Importance of Buyer Psychology to PPC

If someone's buying products from listings at the top of the page or scrolls down to the listings in the middle or at the bottom of the page - it makes a big difference. It makes a big difference because it’s going to:

  1. Significantly impact how you're going to bid:
    1. if constantly decreasing bids is a smart idea, or
    2. maybe sometimes increasing bids is a smarter idea.
  2. Help you understand placement and adding bid percentages based on placement.

Framing Effect

The Framing Effect is a cognitive bias in which people decide on options based on whether they’re presented with positive or negative connotations; e.g. as a loss or gain.

Example: Collagen Powder

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Let’s assume for the following products that, Sponsored or not, they’re all the same. The buyer will be looking at the:

Point Product 1 Product 2
Badge Best Seller Amazon’s Choice
Price $43 $28
Product Listing Name and Keywords Collagen Powder, dairy free Collagen Peptides Powder, Grass-fed
Number of reviews 2000+ 11,000+

Since the products are too similar with one another, nothing stands out to the buyer to determine which is the best product to buy. So, what needs to be done is to compare the products even further by opening each listing in a new tab to look more closely at the images and learn more information about product like ingredients.

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With all the options available, this isn’t going to be a quick decision for the buyer especially if there are hardly any differences between the products. In this case, being at the top of the first page might be beneficial if you have a ‘Best Seller’ or an ‘Amazon's Choice’ badge to stand out from the rest since those are considered as a big deal.