The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

In a lively discussion from SXSW 2025, Usama Fayyad, Joanna Lepore, and Ben Guttmann tackle the pressing challenges of AI in marketing. Fayyad emphasizes the essential blend of human creativity with AI tools, while Lepore warns against over-reliance on technology. Guttmann addresses ethical AI practices and biases that brands must navigate. The trio explores how to maintain genuine connections with consumers while leveraging AI innovations, underscoring that a human touch is vital in this rapidly evolving landscape.

Ingrid Nieuwenhaus, head of Science at alpha.one, dives into the intriguing overlap of machine learning and neuroscience. With her expertise, she explains how predictive eye tracking can assess brand value and consumer attention. The discussion reveals how tiny tweaks in marketing can significantly affect engagement. Ingrid introduces the idea of 'attention vampires'—distractions that undermine messaging. Listeners learn about groundbreaking research like the Heineken ad study, highlighting the balance between storytelling and visibility in advertising.

Jake Teeny, an assistant professor of marketing at the Kellogg School, dives into the art and science of advertising failures. He discusses why ineffective ads thrive, from unclear messaging to the risk of emotional disconnection. Jake emphasizes the necessity of clear goals in advertising to captivate audiences effectively. The balance between nostalgia and novelty in campaigns is also unveiled, highlighting its impact on consumer engagement. Listeners gain valuable insights into avoiding common pitfalls and crafting ads that resonate while standing out in a crowded market.

Dr. Keith Ewart, a consumer behavior expert from CloudArmy, delves into the fascinating world of implicit testing and its profound influence on marketing strategies. He reveals how subconscious biases shape consumer perceptions, often contradicting what they consciously express. Keith discusses innovative methods like implicit association testing and emotional resonance analysis to uncover true consumer attitudes. He emphasizes the importance of System 1 thinking in understanding quick emotional reactions and offers practical tips for leveraging these insights to create effective branding and product development.

In this episode of The Brainy Business podcast, Melina Palmer welcomes Abby Davisson, co-author of the insightful book, Money and Love. Together, they explore the complexities of decision-making in life and relationships, discussing a powerful framework called the Five Cs that can help individuals navigate significant choices with clarity and intention. Abby shares her journey from social innovation leader to entrepreneur, emphasizing the importance of integrating both emotional and financial considerations when making life decisions. The conversation dives into how to clarify what's truly important, communicate effectively with those impacted by your choices, and broaden your perspective by considering a range of options. Abby also highlights the value of checking in with trusted resources and exploring the potential consequences of your decisions, ensuring a holistic approach to navigating life’s biggest questions. In this episode: Discover the Five Cs framework for making thoughtful life decisions: Clarify, Communicate, Consider, Check-in, and Consequences. Learn how to identify your decision-making style and the importance of balancing emotional and rational approaches. Explore practical strategies for discussing significant topics with partners and loved ones to foster healthier relationships. Understand the importance of reframing choices to avoid analysis paralysis and uncover creative solutions. Gain insights into how to evaluate the long-term implications of your decisions for a more fulfilling life. Get important links, top recommended books and episodes, and a full transcript at thebrainybusiness.com/507. Looking to explore applications of behavioral economics further? Learn With Us on our website. Subscribe to Melina’s Newsletter Brainy Bites. Let’s connect: Send Us a Message Follow Melina on LinkedIn The Brainy Business on Youtube The Brainy Business on Instagram

Dive into the intriguing world of optimism bias and discover how it shapes our beliefs and decisions. This discussion showcases the dual nature of optimism, presenting its inspiring benefits alongside its potential pitfalls. Learn how it can lead to overconfidence in personal and professional scenarios, influencing everything from project timelines to consumer behavior. Explore practical strategies to balance this bias for better decision-making, ensuring you're not blinded by positivity as you navigate life's challenges.

Bob Goodson, co-author of 'Like: The Button That Changed the World' and the first employee at Yelp, dives into the fascinating journey of the 'like' button. He shares its origins, revealing how this small feature reshaped online interactions and consumer behavior. Bob examines the psychological impacts of social media, the evolution of language intertwined with technology, and the shift from customer experience to customer context. He also discusses the dual effects of the like button on society, from positive engagement to potential addiction.

Explore the intriguing world of mirror neurons and their role in shaping empathy and consumer behavior. Discover how these neurons allow us to learn through observation, even influencing a monkey's reaction to seeing ice cream. Learn about the power of storytelling and visual cues in marketing, as they can enhance customer engagement and foster authentic connections. Plus, uncover how imagery can promote honesty and drive effective marketing strategies. This episode is a deep dive into how our actions and expressions impact those around us.

In this engaging conversation, Jason Voiovich, a fractional chief marketing officer with 25 years of experience and the author of 'Bullfrogs, Bingo, and The Little House on the Prairie,' discusses how the Great Depression fueled creativity and innovation. He shares intriguing tales of necessity driving inventions like Scotch tape and flour sack dresses. Jason emphasizes the importance of understanding customer psychology in innovation and highlights how historical lessons can inform today's marketing strategies, revealing that challenges can lead to incredible opportunities.

Greta Harper, who champions Maker's Mark's advocacy efforts for the service industry, shares the brand's innovative crisis response during the pandemic. She discusses the impact of empathy and reciprocity on customer loyalty, highlighting how Maker's Mark supported struggling bars and restaurants through initiatives like virtual cocktail classes and meal support. Their commitment to long-term thinking and sustainability not only strengthened community ties but also led to impressive growth in the aftermath of the crisis.