Ownership psychology is a powerful marketing tool that emphasizes the fact that with the right usage, the perception of ownership can boost sales. This concept is based on research and findings by psychologists who were trying to find out why people are attached to certain objects even if they don’t know how to use them.
Marketing is all about understanding what customers think and feel about a product or service. If an organization can get them to think they own something, they will be more willing to actually buy it. This is a well-researched phenomenon in psychology, marketing, and economics, whose basic premise is that people value certain things more highly when they own it compared to when they don’t.
The concept is based on a psychological process called ownership heuristic. This is the belief that an object belongs to someone because they found it or discovered it. To put this in simple terms, if an individual finds a pen in a public place, he will believe that it’s his even though he didn’t buy it.
In this case, there is no knowledge about where that pen came from, and yet the person who found it still assumes it belongs to him because he found it. It is a well-known fact that we value what we have more than what we don’t. Most of us know it from experience, but this tendency has also been studied and validated by scientists many times.
Ownership heuristic is used to describe how humans perceive the value of something they own compared to how much someone else values the same thing when they own it. Studies show that people who possess an object find it more valuable than those who do not, and are less likely to sell it at a low price. This effect is also known as the Endowment Effect.
The Link between the Psychology of Ownership and Marketing
The psychology of ownership states that people tend to appreciate things that are theirs more than other things, even if other things are objectively better or more functional. This suggests that we attach personal value to physical items, and feel a sense of pride when acquiring them.
It is a powerful marketing tool that marketers use to increase brand loyalty and enhance the customer experience. Consumers have an innate desire to feel special, which is why it is important for marketers and business owners to focus on this strategy.
The study of the psychology of ownership shows that customers who feel like they are getting a good deal are more likely to make an impulse buy. When a consumer feels like they own something, they will want to tell other people about their purchase. This can be beneficial for businesses because word-of-mouth advertising is an effective marketing tool.
Customers also want to feel like they are making the best decision possible when purchasing a product or service. By using the psychology of ownership, companies can provide customers with the information that they need in order to make an informed decision.
Leveraging the Concept for Success
Leveraging the concept of ownership makes a lot of sense for marketing when it is thoroughly scrutinized, Someone that already owns something enjoys the benefit of owning it. In order for ownership to be given up, people will need to be compensated in some way for the loss of this benefit. This compensation often takes the form of money, which is why economists have long used the concept of opportunity cost to explain human behavior.
Some of the most successful marketers, such as Steve Jobs, have understood this idea of ownership, and how to create it. The key is successfully marketing the idea that a product or service is in rare supply, in order to create a sense of ownership among customers.
Many of the world’s most iconic brands are successful because of their ability to make customers feel like they belong to an exclusive club. The first step in creating a sense of ownership is to understand what ownership is and what it means for consumers.
Discover more from Ronn Torossian
Ronn Torossian’s Professional Profile on Muck Rack
GuideStar Profile for Ronn Torossian Foundation
Ronn Torossian’s Articles on Entrepreneur
Ronn Torossian’s Blog Posts on Times of Israel
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