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Sunday, October 16, 2011

Branding is Default

I think branding is all about leveraging default behavior. Consumers would be well-advised to train themselves to have a reflexive "anti-" reaction to branding. Instead of passively internalizing a brand as the default, reflexively assume that any product involving a heavy branding investment is probably over-priced, and seek the low-cost alternative.   

In decision-making, examples of the default preference abound: Workers are far more likely to save in retirement plans if enrollment is the automatic option. And the percentage of pregnant women tested for H.I.V. in some African nations where AIDS is widespread has surged since the test became a regular prenatal procedure and women had to opt out if they didn’t want it.
A study published in 2003 showed that while large majorities of Americans approved of organ donations, only about a quarter consented to donate their own. By contrast, nearly all Austrians, French and Portuguese consent to donate theirs. The default explains the difference. In the United States, people must choose to become an organ donor. In much of Europe, people must choose not to donate.
Defaults, according to economists and psychologists, frame how a person is presented with a choice. But they say there are other forces that make the default path hard to resist. One is natural human inertia, or laziness, that favors making the quick, easy choice instead of exerting the mental energy to make a different one. Another, they say, is that most people perceive a default as an authoritative recommendation.

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