The Science Behind Why we Value Some Brands over Others!

The Psychology Behind Perceived Value in Branding

Ever wonder why you’re drawn to certain brands without really knowing why? I’ve long been fascinated by figuring that out, constantly rummaging into the psychology of how our minds decide what’s valuable.

We’re hit with thousands of brand choices every day, and our brains—bless them—can’t analyse every single one. Instead, they lean on mental shortcuts and biases we’ve picked up from society, culture, and the people around us growing up. It’s wild how one person can see a brand as pure gold while someone else just shrugs it off.

I want to share some insights on how cognitive biases, heuristics, and our emotions play a role in shaping what we think about brands and why we might individually see value where another sees something else—trust me, it’s fascinating stuff that can level up your branding game.

What’s Perceived Value, Anyway?

Perceived value is all about what you think a brand’s worth, based on your own gut feelings and thoughts—not some objective price tag. It's important to remember that perceived value is not static; It’s super personal and shifts over time as you have new experiences or see slick marketing.

To get why this happens, we’ve got to talk about two psychological factors: cognitive biases and heuristics. 

Cognitive Biases: The Brain’s Sneaky Tricks

Cognitive biases are like little glitches in our thinking—some call them “errors,” but I think they’re more like quirks. They nudge us into decisions that aren’t always logical, especially with brands. Here’s a few common examples and how they mess with our heads: 

Halo Effect: Ever liked a celebrity and then thought their endorsed shampoo must be awesome, no testing required? That’s the halo effect—good vibes from one thing spill over to the brand. 

Confirmation Bias: This is when we look for information that supports our existing beliefs and ignore anything that doesn't. If you’re already into a brand, you’ll hunt for rave reviews and skip the complaints. Your brain just wants to back up what it already believes. 

Anchoring Effect: Picture a £100 shirt on sale for £50. Suddenly, £50 feels like a bargain, even if you’d never pay that normally. That original price sets the stage and anchors your perception. 

Bandwagon Effect: Everyone’s raving about a new phone? You might jump in, thinking it’s the best just because it’s trending. 

Availability Heuristic: Easily recalled information influences decisions. So, the more a brand’s in your face—hello, endless ads—the more valuable it seems. Familiarity breeds fondness. 

These quirks quietly shape how we see a brand’s worth, often without us even noticing. 

Heuristics: Mental Shortcuts for the Win

Now, heuristics are a bit different. They're our brain’s quick hacks—rules of thumb to make decisions quickly, especially when we don't have all the information or time to think deeply. In branding, two very common and important heuristics stand out: 

Price-Quality Inference: Why do we assume pricey stuff is better? If one shirt’s £20 and another’s £50, our brain often bets on the £50 one being fancier—even if it’s not.

Scarcity Effect: When something is rare or in limited supply, we tend to value (want) it more. Think about those limited edition items or flash “only 2 left!” sales— they create a sense of urgency and make us want them more. 

These shortcuts save us time, but they’re also a marketer’s playground. 

Heart vs. Head: Emotional and Rational Drivers of Perceived Brand Value.

So, what really pulls us to a brand—our feelings or our logic? It’s usually a mix of both. 

Emotional Drivers: This is the warm-and-fuzzy stuff. Does a brand make you happy, spark nostalgia, or feel like you belong? That’s emotional magic at work. Think:

• Brand image and vibe

• That “I get you” connection

• Nostalgia trips

• Feeling part of a community

• A sense of trust and reliability

• The status boost 

Rational Drivers: This is the practical side—like checking the price or specs. If a brand screams durability or cutting-edge features, it’s talking to your logical brain. Think:

• Real-deal quality

• Price tag

• Cool features

• Outstanding performance 

Both matter, but emotions can hit harder. Picture a luxury car: sure, the tech’s great, but it’s the feeling of driving it that seals the deal. 

Real-Life Examples to Bring It Home

Let’s see all this in action with some brands you know: 

Apple:

• Bias: Mere exposure effect—they’re everywhere, so we like them.

• Heuristic: Price-quality inference–High prices scream quality.

• Emotion: Sleek design and that “I’m in the cool club” feeling. 

Nike:

• Heuristic: Scarcity effect with those limited-edition sneaker drops.

• Emotion: Ads that make you feel like a champ. Their branded comms are motivational, making you feel like you can achieve anything with their products. 

Toyota:

• Rational: All about reliability and value for money. They emphasise practical benefits. 

Brands need to find the right balance of both emotional and rational aspects to connect with consumers effectively. Brands that nail both the heart and the head? They’re the ones that stick. 

Why This Matters (and How to Use It)

Understanding these psychological tricks can help brands build stronger bonds and stand out. And as consumers, it’s a cheat code to spot when you’re being swayed. Being aware of these biases and heuristics can help us make more informed decisions and avoid being manipulated. 

- For Brands: Tell killer stories to hit the emotions, and back it up with solid perks for the practical folks.

- For You: Watch out for biases and shortcuts—don’t let a high price or hype trick you into overvaluing something. 

So, whether you’re crafting a brand or just trying to shop smarter, I hope you found this useful.