The science of decision making: how customers decide what to buy
Posted: Mon Dec 23, 2024 8:55 am
In this guide you will learn what the dual process theory of decision making is and how to use it to increase your conversions and sales.
Dual process theory of decision making
On this page
What is the dual process theory of decision making?
Why we are not as rational as we think
When to appeal to system one and system two
How to appeal to system one of decision making
How to appeal to decision-making system two
Every purchasing decision is unique
Frequently asked questions about decision making
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When I was little, my grandmother and I would go to the supermarket, checking every aisle for deals. When we came home and left the bags on the counter, my grandfather would say, “Helen, what is all this stuff?!”
My grandmother loves to buy things on sale. My mother and my aunts couldn't canada whatsapp group leave my grandparents' house without having the trunk full of household products.
How could two people make purchasing decisions in such different ways? For my grandfather, shopping was completely illogical. (Who would use that much ketchup?) For my grandmother, it was completely rational.
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What's the reason? It turns out that dual process theory is real.
What is the dual process theory of decision making?
Dual process theory is the idea that there are two different systems during the decision-making process : system one and system two. One process is automatic and unconscious, while the other is controlled and conscious.
The theory dates back to the 19th century and to William James , an American philosopher and psychologist who laid the groundwork for more modern interpretations. If dual-process theory sounds familiar to you, you may have read Thinking, Fast and Slow , by Daniel Kahneman, who popularized the theory in 2003.
What is system one?
System one is the automatic and unconscious mind:
It requires very little effort, if any.
It's fast.
It is primitive, ancient in terms of evolution. (In fact, it is often called the “reptilian brain.”)
It has a large capacity.
It's not logical.
System one is always on, always active.
What is system two?
System two is the controlled and conscious mind:
It takes a lot of effort.
It's slow.
It is modern, new in terms of evolution.
It has a small capacity.
It stands to reason.
System two requires your full attention and gets exhausted quickly.
Why we are not as rational as we think
As humans, we like to believe that we are rational people who make rational decisions. The truth is that it is very rare for humans to make a genuinely logical and rational decision.
System two is missing more often than we think.
That means that for most of the day, you are using system one to make instinctive, emotional decisions.
So why do we think we are more rational than we really are?
System two is often responsible for rationalizing system one’s decisions. For example, let’s say you buy a new t-shirt after seeing a funny ad on Facebook. You didn’t make the decision using sound logic and reasoning, but system two will “wake up” and rationalize the otherwise irrational decision.
“It was on sale,” “I needed a new shirt for the gym,” “The quality of the shirt is excellent.” As soon as the purchase is made, system two works to rationalize system one’s decision—the decision you made on instinct alone.
In the end, you think you have made a logical decision and remain oblivious to how influential system one really is.
Dual process theory of decision making
On this page
What is the dual process theory of decision making?
Why we are not as rational as we think
When to appeal to system one and system two
How to appeal to system one of decision making
How to appeal to decision-making system two
Every purchasing decision is unique
Frequently asked questions about decision making
Start your online business today.
For free.
Free trial
When I was little, my grandmother and I would go to the supermarket, checking every aisle for deals. When we came home and left the bags on the counter, my grandfather would say, “Helen, what is all this stuff?!”
My grandmother loves to buy things on sale. My mother and my aunts couldn't canada whatsapp group leave my grandparents' house without having the trunk full of household products.
How could two people make purchasing decisions in such different ways? For my grandfather, shopping was completely illogical. (Who would use that much ketchup?) For my grandmother, it was completely rational.
Click here to start selling online right now with Shopify
What's the reason? It turns out that dual process theory is real.
What is the dual process theory of decision making?
Dual process theory is the idea that there are two different systems during the decision-making process : system one and system two. One process is automatic and unconscious, while the other is controlled and conscious.
The theory dates back to the 19th century and to William James , an American philosopher and psychologist who laid the groundwork for more modern interpretations. If dual-process theory sounds familiar to you, you may have read Thinking, Fast and Slow , by Daniel Kahneman, who popularized the theory in 2003.
What is system one?
System one is the automatic and unconscious mind:
It requires very little effort, if any.
It's fast.
It is primitive, ancient in terms of evolution. (In fact, it is often called the “reptilian brain.”)
It has a large capacity.
It's not logical.
System one is always on, always active.
What is system two?
System two is the controlled and conscious mind:
It takes a lot of effort.
It's slow.
It is modern, new in terms of evolution.
It has a small capacity.
It stands to reason.
System two requires your full attention and gets exhausted quickly.
Why we are not as rational as we think
As humans, we like to believe that we are rational people who make rational decisions. The truth is that it is very rare for humans to make a genuinely logical and rational decision.
System two is missing more often than we think.
That means that for most of the day, you are using system one to make instinctive, emotional decisions.
So why do we think we are more rational than we really are?
System two is often responsible for rationalizing system one’s decisions. For example, let’s say you buy a new t-shirt after seeing a funny ad on Facebook. You didn’t make the decision using sound logic and reasoning, but system two will “wake up” and rationalize the otherwise irrational decision.
“It was on sale,” “I needed a new shirt for the gym,” “The quality of the shirt is excellent.” As soon as the purchase is made, system two works to rationalize system one’s decision—the decision you made on instinct alone.
In the end, you think you have made a logical decision and remain oblivious to how influential system one really is.