Latest / Marketing Psychology with Fexingo: Behavioral Triggers, Persuasion, and Consumer Behavior / How the Labelling Effect Shapes Consumer Identity
Transcript
- Lucas: Luna, I want to start with a really simple question. When you describe yourself, what words do you use? Are you a coffee drinker, a morning person, a saver, a spender, a runner? Luna: I'd say I'm a coffee drinker and a saver, for sure. But I also call myself a runner, even though I only jog a couple times a week. Lucas: Right, and that's exactly the point. The labels we assign to ourselves shape our behavior. But here's the twist for marketers: when a brand gives you a label, you often start acting in line with it. That's the labelling effect. Luna: So if a store calls me a 'sustainable shopper,' I might buy more eco-friendly products just to live up to that label? Lucas: Exactly. The classic study on this is from 1975. Researchers told elementary school children they were 'good at arithmetic' based on a fake test. Those kids actually performed better on later math tests — not because the label gave them skill, but because it changed their self-concept. They wanted to be consistent with the label. Luna: That's fascinating. And I bet brands use this all the time without us realizing it. Lucas: All the time. Take Patagonia. Their marketing doesn't just say 'buy our jacket.' They frame their customers as 'environmental stewards' or 'conscious adventurers.' The implied label is that you're a person who cares about the planet. Once you accept that label, buying a Patagonia jacket becomes an expression of identity, not just a purchase. Luna: And that's why their customers are so loyal. It's not just a transaction; it's a statement about who they are. Lucas: Right. And it works in smaller ways too. A study from 2010 found that when an e-commerce site showed a banner that said 'Welcome back, savvy saver,' users saved more money on that visit compared to a generic welcome message. The label 'savvy saver' primed them to act frugally. Luna: I've seen that with financial apps like Mint. They send you notifications like 'Great job, you're a budgeting pro.' It feels good, and it makes you want to keep budgeting. Lucas: That's the labelling effect in action. But it cuts both ways. If a brand labels you a 'luxury shopper,' you might start spending more. And if you're labelled a 'bargain hunter,' you might avoid full-price items even when they're a better value. Luna: So there's an ethical dimension here. When does a label become manipulative? Lucas: I think the line is when the label is false or when it exploits a vulnerability. For example, some subscription services label users as 'VIP members' just to justify higher fees. That's not identity-building; that's price anchoring dressed up as identity. Luna: But when it's authentic, it's powerful. I'm thinking of Nike's 'Just Do It' campaign. It doesn't call you an athlete — it calls you someone who takes action. That's a label almost anyone can adopt. Lucas: And once you adopt it, you buy more Nike products to reinforce that identity. The key insight for marketers is that people will work to stay consistent with the labels they've accepted. So if you can give them a positive, aspirational label, they'll behave in ways that align with it. Luna: Does this work in B2B marketing too? Like, can you label a procurement manager as an 'innovative leader' to get them to try new software? Lucas: Absolutely. In B2B, the labels are often professional identities. A CRM company might call its users 'customer-centric growth drivers.' It sounds corporate, but it works because it ties the product to a professional self-image. There's research showing that when sales reps are labelled 'consultative sellers,' they actually ask more diagnostic questions. Luna: So it's almost like a self-fulfilling prophecy. You label someone, and they become that thing. Lucas: Exactly. And that's why the labelling effect is such a durable tool. It's not about tricking people; it's about helping them see themselves in a new light. The best marketing doesn't create a need — it creates an identity. Luna: I want to push back on that a little. If I label myself a 'runner' but I only jog twice a week, isn't that inauthentic? And if a brand reinforces that label, aren't they enabling a kind of identity inflation? Lucas: It's a fair point. But the research suggests that even aspirational labels can motivate behavior. If you call yourself a runner, you might run more often to live up to it. The label becomes a goal. So brands can use labelling to help people grow into an identity, not just reflect one. Luna: That's optimistic. Let's talk about a concrete example. I remember reading about a grocery store that labelled certain checkout lanes as 'express lanes for quick shoppers.' They found that people in those lanes actually moved faster, even if they had a full cart, because they wanted to be consistent with the 'quick shopper' label. Lucas: I hadn't heard that one, but it's perfect. It shows that labels can influence behavior even in low-stakes settings. And it's a low-cost intervention — just a sign. The return on investment for that kind of label is enormous. Luna: And it's not just physical retail. Online, you see labels like 'frequent buyer' or 'top reviewer' on Amazon. Those labels encourage more purchases and more reviews. Lucas: Right. And that ties into what we've talked about before with the IKEA effect and the endowment effect. Labels make you feel ownership over an identity, and you want to protect that identity. It's a form of psychological investment. Luna: So give someone a label, and they'll defend it by behaving consistently. That's a powerful nudge. Lucas: It is. And if these marketing psychology conversations have sparked something you've actually used in your own work or just found interesting, there's a way to support this show and keep it ad-free. A lot of listeners have asked how they can help, and the simplest way is a small donation at buy me a coffee dot com slash fexingo. It's what lets us keep digging into these topics without sponsored content. Luna: Yeah, and it genuinely makes a difference. Even a few dollars helps us keep the research time and the production quality where it is. But back to labelling — I want to ask about the risks. What happens if a brand gives you a label that you reject? Lucas: Great question. If the label feels wrong, it can backfire. A classic example is when a brand calls you a 'loyal customer' but you haven't bought from them in months. That dissonance can make you feel guilty or annoyed, and it weakens the relationship. Labels need to feel earned, not imposed. Luna: So there's a Goldilocks zone: a label that's aspirational but believable. Lucas: Exactly. And the best labels are specific. 'Eco-conscious shopper' is better than 'green consumer.' 'Smart investor' is better than 'finance person.' Specificity makes the label more vivid and more actionable. Luna: Let's talk about a failure case. I remember a fitness app that labelled users as 'athletes' — and a lot of people uninstalled because they felt the app was out of touch. It was too aspirational. Lucas: That's a perfect example. The label 'athlete' might work for someone training for a marathon, but for a casual walker, it's intimidating. A better label would be 'active person' or 'movement lover.' The label should stretch the user slightly, not break their self-concept. Luna: So the principle is: give people a label that reflects who they want to be, not who they are right now — but not so far ahead that it feels unattainable. Lucas: Exactly. And that's the art of it. The science is clear: labels shape behavior. But the craft is choosing the right label for the right audience. That's what makes marketing psychology both a science and a creative discipline.