Book Review: Decoded – The Science Behind Why We Buy
We have a new entry for our book club! This one comes from Adam Lunt, who had the pleasure of reading Phil Barden’s book Decoded: The Science Behind Why We Buy.
“Decoded by Phil Barden is a modern day classic and well worth a read”
Decoded Book Review
About Phil Barden
Phil Barden is a proven marketer with over 25 years of experience, including senior and international roles at high-profile companies such as Unilever, Diageo and T-Mobile. Fascinated by insights from decision science and the value they can bring to marketing, he left his post at T-Mobile to immerse himself in this new field. This book introduces the approach and provides a framework for its application, covering brand strategy, positioning, and interactive media.
Book Review: Decoded – The Science Behind Why We Buy
This book introduces this approach and provides a framework for how it can be applied, covering brand strategy, positioning, and interactive media.
The book talks a lot about System 1 & System 2 thinking, which is based on the work of Daniel Kahneman. Kahneman believes that System 1 relates to perception and intuition and involves fast decision-making, which uses little energy. Whereas System 2 is a slower, more thought-out decision-making process, which consumes more energy. Essentially, all of the biggest and best brands are processed by System 1 thinking and bypass System 2, meaning consumers don’t have to think about decision-making – they just do it.
Decoded by Phil Barden Book Review
Who this book is aimed at
This book is aimed primarily at those interested in marketing. However, it will also appeal to anyone interested in brand strategy, psychology and behavioural economics.
First choice brand effect & Decision Science
In a study involving two brands, neuroeconomists examined brain scans of respondents who had been shown 2 different brands, with one of the images being their favourite brand in that category. This study uncovered two things. Firstly, when shown their favourite brand, brain activity differed from that when shown their non-favourite brand. The brain showed much less activity in areas related to reflective thinking, called cortical relief. Secondly, this cortical relief occurs only with respect to the number-one brand – even a second-placed brand doesn’t trigger this effect. This effect leads to quick decision-making and requires less thought, which in turn yields intuitive decisions. This highlights the need to be the number one choice and the ‘go-to’ brand or service.
Framing
All of our decisions are made via a complex series of related senses, such as perception, smell, taste and so on. All of these perceivable signals frame the way we make our decisions. For example, subtle changes in a product’s signal (such as the shape of a jar or bottle) can have a massive impact on how it is perceived and, in turn, on the overall product experience. We’re not aware of this process occurring, as it is an implicit reaction and involves both the autopilot (system1) and pilot (System 2) working together. This is relevant for brands, as it allows them to ‘frame’ their offering, which in turn affects how a product or service is costed.
As an example, ‘Voss Water’ has created a ‘frame’ that positions their product as an essential accessory, leveraging the bottle’s shape and the purity of the water to charge a premium. This ties into brand equity: the higher a brand’s equity, the more it can charge for its product.
Overall thoughts
I found Decoded really interesting and highly recommend it. It provides both theory on the subject as well as real-life examples of how it can be applied, which really helps to bring the ideas to life. It gives a lot of food for thought, and given the impact it had on Philip’s own career, this is a must-read for anyone in marketing or with an interest in brand and brand strategy. If you like this book review of Decoded, then we would suggest you also read our book review of The Choice Factory by Richard Shotton.
Latest News & Book Reviews
Keep up to date with the latest news from Vision One
