Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Defaults to the Familiar Brand
Episode 49 of Behavioral Economics examines the mere-exposure effect: the psychological tendency to prefer things simply because we've seen them before. Lucas and Luna unpack a classic 1968 University of Michigan study where participants rated Chinese characters more positively after repeated exposure, even though they couldn't read them. They then tie this to real-world marketing—Coca-Cola's ubiquitous red cans, Procter & Gamble's shelf dominance, and the 'brand familiarity premium' that allows incumbents to charge up to 20 percent more than generic…
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