May 7, 2024 - 5 Min Read From gut feeling to science

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How Daniel Kahneman decoded decision-making mechanisms 

Daniel Kahneman succeeded like no one before him in decoding the mechanisms of human thought and behavior. With his work, the behavioral economist laid the rational Homo Oeconomicus to rest and opened up entirely new insights for communication and marketing.

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Trained processes and conscious thinking

With his bestseller “Thinking, Fast and Slow,” Daniel Kahneman revolutionized our understanding of human cognition. He explains the structure of the human brain and describes the functioning of the two thinking systems involved:

The first system is constantly active. According to neuroscientific research, this thinking system accounts for 95 percent of our daily cognitive activity. It is fast, intuitive, and works subconsciously. In a complex world, this system enables us to trigger feelings, impressions, and associations with minimal effort.

The second system is far more precise and analytical, but also significantly slower. It consumes more energy and is therefore only activated when a situation cannot be solved by System 1 alone. It processes information consciously, logically, and methodically. Unlike System 1, it does not function intuitively but is based on deliberate thinking.

Ultimately, human decisions – and the resulting actions – are determined by the interplay of both systems. However, the theory also reveals how quickly our intuition can lead us astray.

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What we can learn from Kahneman in marketing

Decisions for or against a brand always begin with System 1 – and are often dominated by it, even in B2B. System 2 may strive to have its say, but System 1 has already formed an initial judgment based on emotional brand resonance, which significantly influences the final decision. In some cases, this goes so far that rational arguments are ignored or given less weight if they do not fit the image created beforehand.

But why is that? How can a gut feeling become so strong that reason takes a back seat?

Perfect match: irrationality and economics

Daniel Kahneman also had an answer to this: heuristics. These cognitive biases influence our judgment in many ways. The human brain does not take all available arguments into account in decision-making, leaving room for irrational thinking to run free.

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Relevance for our agency work

The insights of the psychologist and behavioral economist play a major role in our daily work – helping us understand how to make even highly technological brands tangible and emotional.

We all fall prey to cognitive biases – including B2B decision-makers. But with sufficient knowledge of the different heuristics, we can consciously use and actively manage them. The goal is not to mislead people, but to present our clients’ selling points in a way that speaks to both systems of human thinking.

This is how we develop messages that resonate with both System 1 and System 2.

Author: Kevin

Kevin discovered his love for technology with the Atari 2600 – a passion that burns stronger than ever today. As Managing Director at SYNBRAND, he has made it his mission to make technology companies tangible, emotional, and successful from a brand and communications perspective. No client is too complex and no product too demanding to explain. With passion, he inspires everyone at the SYNBRAND team to share this enthusiasm.

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