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Psychology In Business: Core Principles To Understand

Psychology in businessPeople often forget that business is, at its core, a series of interactions between various people. As a result, human psychology always plays a role.

In this article, we’ll cover a variety of psychological truths and how they can play into our go-to-market activities.


Cognitive Dissonance

One of the most important psychological concepts to understand is cognitive dissonance. This occurs when a person’s beliefs clash with what they interpret in the world around them.

For example, imagine your boss has just told you that your department needs to increase sales by 20% this quarter. However, you know that this goal is unrealistic, given the current market conditions. The cognitive dissonance here is created by the tension between your goal (to increase sales) and your belief (that the goal is unattainable).

Marketing websites often create this problem as well, where the copy on the page doesn’t match the overall design or even the understanding of the brand held by their prospects and customers.

Think of cognitive dissonance as friction slowing processes throughout your business and seek to eliminate it.

Goal Gradient Effect

The goal gradient effect is a case of cognitive dissonance that occurs when people pursue a goal. As we get closer to our goal, we start to feel more and more motivated. This is because we can see the light at the end of the tunnel.

The Goal Gradient Effect is a powerful tool that marketers can use to increase customer engagement and conversion rates, enablement professionals can use to enhance training effectiveness, and other members of the go-to-market team can use it to improve overall flow through various processes.

Do you want to get nerdy?  Check out this research from the Journal of Marketing Research.

Your Brain has a daily processing limit

According to most research, your brain is limited to approximately 4 hours of complex daily processing.


We will continue adding to this article over time. However, if you have something we should add, let us know, and we’ll add that to the top of our writing pile.

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