Sunk fallacy cost
This natural bias links to people’s inclination to follow through on something if they have already invested time, effort or money into it, whether or not the costs outweigh the benefits. Think about marketers that have invested heavily in their ‘pet projects’ and do not intend to change course, despite warning signals from the market.
Immersing in the lives of everyday consumers is crucial to reprogram these biases and overcome the disconnect between consumers and marketers. It’s precisely through connecting and collaborating with consumers that marketers can extract the valuable insights they need to make their brand thrive in the market.
For Nike Hong Kong, for example, we immersed the brand’s stakeholders in the everyday life of 30 young fashionistas and sneakerheads, via the Square, our proprietary consumer insight platform. This immersion helped Nike to spark fresh conversations about sneakers, reigniting the local sneaker culture in Hong Kong. Connecting with consumers helps brands to understand the needs, frictions and aspirations of everyday people; and this is vital to stay relevant in a fast-changing environment.