The brain is composed of different parts, each responsible for specific cognitive functions; amongst them, the prefrontal cortex is the bandmaster that orchestrates the choices we make, from relatively easy ones (should I continue reading this article, or am I already bored?), to more potentially life-changing decisions (should I buy a house? Should I move to another country?)
The decision-making process involves different functions: integrating different pieces of information from our environment, comparing the values of available options, anticipating a reward from a specific option, weighing the costs of choosing between different options, etc. Depending on the function, different parts of the prefrontal cortex can be activated.
To make decisions, the brain must process and analyze information. However, it can be tricked into evaluating the received information incorrectly.
See the example below. At a glance, you think that the middle line is the largest, and the upper is the shortest, although all three have the exact same length (I personally used my pen to make sure all of the edges were aligned when I came across the picture). An optical illusion is created by positioning the arrows either inwards or outwards, altering our perception of the options and leading the viewer to think of the second line as longer than the first one.
Known as the Müller-Lyer illusion, this example illustrates how the brain processes information in its specific context rather than at an absolute level. By adding context to options, each option is assigned a greater or smaller value, illusory or not.
While errors in evaluation are not limited to sensory perception, they can impact decision-making on a broader scale.
Consider the questions below:
They constitute a classic psychological test known as the Cognitive Reflection Test (CRT).
These questions share a particularity: they have intuitive wrong answers (100 minutes for question 2, for instance), and require thorough reasoning to give the correct answer (5 minutes for question 2).
In 2007, Alter & al performed an experiment where they presented participants with this test. Half were issued a “fluent” version, with questions printed in a clearly readable font, whereas the other half got a “disfluent version,” printed in a smaller, less clear, italicized font. The results may come as a surprise: the “disfluent” version prompted more correct answers!
The questions were the same for everyone, fluent or disfluent versions assignment was random, and yet surprisingly, a simple font manipulation led to different results. This example illustrates how presenting information can easily alter our choices.
Daniel Kahneman, a Nobel prize-winning economist, defines two modes of thought: System 1 and System 2.
System 1 thinking is defined as the process by which we make fast, automatic decisions in our everyday lives, mainly driven by the willingness to consume as few cognitive resources as possible (cognitive ease). System 2 thinking, on the contrary, relies on the slow, thorough decision-making process required for more complex and important decisions. In the CRT dual experiment above, the fluent version created a familiar context for participants, leading to cognitive ease and the use of System 1 thinking for many of them. Meanwhile, the disfluent version created a sort of cognitive strain with its unfamiliar, difficult-to-read font. This strain was extrapolated from reading the questions to answering them, and led more people to switch from System 1 to System 2 thinking, thereby answering the test correctly.
Brands are well aware of these mechanisms and know-how information presentation can impact our ability to evaluate different options. Therefore, they pay close attention to how their offers are presented to potential customers to ensure a higher conversion rate. For instance, studies have shown that people are more likely to complete a purchase when shipping is free. Instinctively, buying a $12 t-shirt with free shipping seems more appealing than a 10€ t-shirt with 2€ shipping fees.
Likewise, dairy companies would rather mention “25% fruit” on a fruit yogurt container than “75%” yogurt, as people would believe the first option to be superior.
Stay tuned for the second part of the article!
Don’t hesitate to subscribe to our Tea O’Clock newsletter to keep up to date with the release of new articles and the latest market trends → the fifty-five newsletter
Discover all the latest news, articles, webinar replays and fifty-five events in our monthly newsletter, Tea O'Clock.