Consumers have a tendency to appreciate things that are relevant to them. In marketing, this concept appears in the form of tailored messaging, familiar or nostalgic products or personalized content. It’s also present in consumer behavior. Feelings of missing out or a desire to protect what's theirs can influence purchase decisions.
This is a result of psychological ownership, a sense of close personal attachment to a brand or product — and it can have a major impact on the customer lifecycle.
Colleen Kirk, D.P.S., associate professor of management and marketing studies at New York Institute of Technology, spoke to us about psychological ownership and what it means for brands.
The basics of psychological ownership
“Psychological ownership refers to a feeling that something is ‘mine!’ People can feel ownership for almost anything, from physical products to artistic creations. Psychological ownership can emerge whether we legally own something or not,” Kirk said.
Feelings of ownership stem from three routes: customization, proximity and history. Consumers feel ownership when they invest in something. So when they customize a pair of Nike sneakers or pick up a mug in-store, the time spent with the product can increase its value and encourage ownership.
A consumer’s history with a brand can also influence how they feel about it. If the consumer grew up with or used a product before it reached mainstream success, they may believe they have more stock in the item than others. Even imagining touching, using or wearing a product is enough to elicit feelings that something belongs to consumers.
The impact of psychological ownership
Feelings of ownership in consumers become evident in consumers’ behaviors.The endowment effect is the phenomenon that people value things they own more highly than those they don’t. This can explain why consumers often struggle to return items they’ve already invested in or adapt to new product changes.
“In my research, my colleagues and I have shown that consumers can become very defensive when they feel ownership of a product. A classic example was when Tropicana tried to remove consumers’ beloved straw and orange from their packaging in 2009,” said Kirk. “Consumers at the time had grown up with the straw and orange on their breakfast table — they had a strong sense of intimate knowledge and ownership. They rebelled, and within six weeks, Tropicana had to scrap their repackaging efforts.”
How to implement psychological ownership within your marketing
Understanding psychological ownership is only half the battle. You must implement it in your marketing efforts to see its impact.
Luckily, there are a few marketing tactics that innately encourage psychological ownership, and you’ve likely used them before. Scarcity as a marketing tactic is well documented and can be a powerful tool in increasing psychological ownership. If consumers look at an item as their own and fear losing it (it's in short supply, the discount is running out, etc.) they're more likely to commit to the purchase.
Empowerment is another tactic. For example, brands could give consumers some control over a product by inviting them to contribute to its development. A great real-life example of this was the Lays Do-Us-a-Flavor campaign, where consumers not only invested themselves by submitting their own ideas for unique chip flavors but also felt a sense of control by voting on their favorites.
Kirk also encourages retail stores to invite consumers to touch products or sample items. Interacting with the product enhances feelings of ownership, which will strengthen their commitment to purchasing it, especially if they realize the product is the last one available or others are eyeing it.
Psychological ownership is an innate human reaction, and its presence in the consumer lifecycle is apparent. By increasing opportunities for psychological ownership in your marketing, you allow consumers more chances to feel connected to your products and pride in their purchase decisions.
