Is Psychology Important In Business?

It may not be commonly known, but the role psychology plays in business is essential, especially in the age of digital media.

For business professionals, converting visitors into leads, then paying customers, requires understanding how visitors think and behave, in an effort to persuade them to purchase from you.

In this article, we take a very brief look at a few psychological concepts that could boost consumer turnout for online businesses.


Authoritativeness convinces consumers to perceive a business with more solemnity. A prominent psychological concept known as Fogg’s Prominence-Interpretation Theory highlights the significance of presumed, surface, earned and reported credibility in the digital landscape.

Domain extension, the layout and cleanliness of an online site, the consideration of foreign ownership, and the depth of honorary awards or authoritative impressions are major factors in persuading the end-user into making particular judgments or decisions that benefit a business. In a nutshell, authoritativeness transitions into trust in a service or product.

Social Traction

People tend to instill more trust in a belief or action when group thinking is involved. Social networking sites paved the way for viral marketing and other immense forms of social spreading, thanks to digital natives, or online inhabitants who have never lived a life without digital technology (e.g. Gen Z populants).

On social networking sites, an appropriate following with high engagement rates could make it easier to govern the mindset of potential consumers by a framework known as “social proof.” The constant state of flux in the digital environment allows for the exploitation of consumer motivations and behaviors, using this cybercognitive concept.


Another concept is comprehending the psychological state of workers within a business or organization. Any negative implications that may arise from employees can be curbed by assuring businesses have the appropriate structure in place. For instance, a limited liability company, or LLC, would inhibit any liability against the owners of a business, according to this comprehensive guide to forming an LLC. The guide also extensively outlines taxation-based benefits.

But shifting back to the psychological state in the workplace, it is imperative that the right form of employees be hired, as those who are committed to a business are more likely to feel a connection with their field of work and thus clearly interpret and assure the goals of the business at hand. The presence of affective, continuance, and normative commitment is highly valuable for any business or organization.


The principle of reciprocity involves wanting to give something in return when something is received. Reciprocity is experienced by many on a daily basis. It is also a powerful tool in acquiring new consumers or attracting old ones.

Rewarding your consumers could improve their loyalty to you. Thanking consumers by offering a gift of value could go a long way. It encourages clients to reciprocate with a similar good act.


Research studies conducted among business psychologists have delved into the impacts of a phenomenon called perceptual salience. In plain terms, salience involves the magnitude of how something stands out from the background in which it is being presented.

A few studies have shown that in-salient ad messages on print advertising demonstrate the strongest impact in triggering ad processing that subsequently results in increased consumer awareness.


The study of color hues aims to understand how it affects human behavior. Color psychology has been used to predict and influence the behavior of consumers.

As one research study of color hues, published by a professor of psychology named Andrew J. Elliott, concluded, “Our empirical review focuses especially on color in achievement and affiliation/attraction contexts, but it also covers work on consumer behavior as well as food and beverage evaluation and consumption. The review clearly shows that color can carry important meaning and can have an important impact on people’s affect, cognition, and behavior.”

The Baader-Meinhof Phenomenon

This phenomenon occurs when awareness of something increases, after noticing it for the first time. A form of cognitive bias, the phenomenon is common in digital advertising through mass data collection and also in viral marketing campaigns.

Its impact on marketing could help position your brand at a higher level within your industry.

Emotional Intelligence

Emotional intelligence can be incorporated within the workplace among team members or when pitching a product to a future consumer. Emotions play a major role in consumer decision-making.

A couple of central areas of emotional intelligence that are key to improving the client-to-business relationship are empathy, motivation, self-awareness, self-regulation, and social skills. Implementing these focus areas could lead to more positive outcomes for any business or organization.

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