The Hidden Psychology that Powers Promotional Products Success

Ever wonder why that promotional pen you received gives you the uncanny ability to remember a brand’s name better than that million-dollar advert?

The secret lies in the psychology that powers promotional merchandise.

Come with us on this journey as we pair psychology and marketing. And learn why people love receiving promotional merch.

Fundamentals of Psychology in Marketing

The human brain is incredibly sophisticated and at the same time incredibly simple, cutting corners when it really shouldn’t be. It’s part of the reason why marketing is so effective in the first place!

Daniel Kahneman gives a good explanation of this in his book “Thinking Fast and Slow” dividing the way we make decisions into two systems. System 1 (fast thinking) and System 2 (slow thinking).

The old saying “People buy with emotion and then justify with logic” seems to be pretty accurate. Using our system 1 to make the decision and then justifying with system 2. For example:

• Fame – if a brand comes to mind, it’s a better choice
• Fluency – if a particular brand is recognisable it’s a better choice
• Feeling – if you have a positive feeling towards a brand it’s a good choice

Key Psychological Principles That Relate To Promotional Products

The Reciprocity Principle

If you give someone something for free they’ll feel an obligation to “return the favour”.

Often in terms of business, this means they’ll consider purchasing your product or be open to having a discussion with your sales team.

When giving away your promotional products think of what action you would like the recipient to take.

The Scarcity Principle

We’ve all seen it in action – that magnetic draw to grab the last product on the shelf, or the allure of limited edition items. Toilet paper during COVID anyone?

This is the Scarcity Principle at work, and it’s an impactful tool in the promotional merchandise sphere. Because merchandise is made custom and in limited quantities, it leverages the fear of missing out (FOMO) factor.

The perception of scarcity can create a sense of urgency and exclusivity, making your promotional merchandise feel more valuable and enticing to recipients.

The Endowment Effect

The Endowment Effect describes the phenomenon where individuals value an item more highly simply because they own it.

In the realm of promotional merchandise, this can be a powerful ally. When a customer receives a promotional item, even a simple one like a pen, it becomes “theirs”.

That pen is now not just any pen—it’s their pen and they now own a little piece of your brand.

This can lead to an increased emotional connection and reinforce positive sentiments. Because why would they own something they don’t like? (Cognitive dissonance)

The Anchoring Effect

When it comes to making decisions, the first piece of information we encounter often becomes our “anchor”. The point of reference against further information we receive.

In other words, first impressions matter!

For many a promotional product will be the first interaction with your brand. So make it positive and make it count.

This also highlights the importance of investing in better-quality products. Don’t be the brand that gave them that “cheap pen that doesn’t even work”!

Tangible Evidence

Promotional products are physical products you can touch, feel and see.

They are harder to forget and overlook than intangible objects like that advert on social media you’ve scrolled past 3 times already.

Social Proof

This is the concept that people tend to follow the herd and use the recommendation of others as a heuristic when making decisions. It’s why reviews and testimonials are so powerful.

Seeing others using/wearing promotional merchandise makes us subconsciously trust that brand more. Because if others are happy to associate with the brand it must be trustworthy!

The Power Of Free (Zero Price Effect)

The word “free” triggers an irresistible allure, creating what’s called the Zero Price Effect.

When customers receive free promotional items, they perceive more value, associating your brand with positive feelings and often responding reciprocally.

Therefore, your free giveaways are more than gifts—they’re strategic tools that utilize the Zero Price Effect to enhance customer relationships and stimulate demand.

Summing Up

In a landscape more competitive than ever having promotional merchandise in your corner can be one piece of the puzzle in standing out from your competitors and becoming the number one choice.

As a recap, these are some of the psychological principles related to promotional products:

• The reciprocity principle
• The scarcity principle
• The endowment effect
• The anchoring effect
• Tangible evidence
• Social proof
• The power of free

Now you understand a little bit more about what makes promotional products work it’s time to add your logo and get them into the right hands ASAP. Browse the range or send us your brief and we can offer tailored suggestions to your organisation. Click the link below to get started.