🧠The Psychology of Luxury, Life and Illusions of Adequacy
Welcome to our latest newsletter.
This month, we look at how our brains organise our daily lives into chapters.
Don't miss our latest on-demand webinars - short, sharp behavioural science training for you and your teams.
We look at how illusions of information adequacy convince us we're right. Even when we are wrong.
And new insights into luxury and conspicuous consumption.
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❤️ Make your communications more persuasive.
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🤑 How to apply the psychology of money to improve your marketing
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đź’Ľ How to persuade business audiences to make decisions
You’ll find these and many others here, along a host of other psychological insights for you to apply to your business.
Please let us know what you think of them. And if there are any topics you’d like us to cover in future.
Photo by Imagen3
Life, By the Chapter: How Your Brain Organizes Daily Experience
New research shows that our brains naturally segment the day into “chapters,” or meaningful episodes, which form our memories. These divisions aren’t random; they’re triggered by changes in our environment, attention, or goals, helping us compartmentalize complex experiences.
Five takeaways:
Moments Matter: Small changes—like lighting or sound—can create lasting, memorable “chapters” for customers.
Goal-Oriented Engagement: Align experiences with customer intentions; tailor interactions to key moments.
Use Contextual Markers – Signal shifts, like a change in tone or imagery, to re-engage audiences at critical moments and help them transition mentally.
Dynamic Design: Adjusting environments subtly to mimic these chapter transitions can enhance recall and brand association.
Understanding these psychological “chapter breaks” can foster more engaging and memorable customer experiences.
Photo by Huy Nguyá»…n
Certainty Sells—But Buyer Beware
Ever noticed how people confidently hold opinions even when they’re wrong? A study shows it’s not stubbornness—it’s the “illusion of information adequacy.” Participants felt informed after seeing one side of a story, deciding swiftly and firmly. Psychologically, partial knowledge often breeds false confidence, a trap especially dangerous in high-stakes decisions.
Here are four takeaways for communicating to your audiences:
Acknowledge Data Gaps – Be upfront about limitations in the data you’re presenting. Instead of sweeping these under the rug, make clear what is known and unknown. This builds credibility and fosters informed decision-making.
Introduce Counterpoints Thoughtfully – Rather than justifying your stance, strategically introduce alternative perspectives. This makes your message more robust and reflects a well-rounded approach, particularly valuable in fields where consensus is rare.
Emphasize the Complexity – Help audiences appreciate nuance by framing issues as multi-layered rather than binary. Use storytelling techniques to show how various factors interplay to shape outcomes, which cultivates a deeper understanding.
Foster Curiosity, Not Closure – Encourage engagement by framing messages as starting points rather than final answers, especially for complex or evolving topics. This can be as simple as prompting, “What else might shape this?”
Photo by RDNE
Flashy by Design: Evolution’s Blueprint for Modern Luxury
It seems the urge to splurge has deeper roots than mere status anxiety. Research highlights that conspicuous consumption, while often seen as a modern vice, actually stems from evolutionary mechanisms tied to survival and social signalling. This behaviour, dubbed "costly signalling," demonstrates both status and resources, initially meant to attract mates and display genetic fitness​.
Businesses can glean some unexpected insights from this ancient trait:
Complex Motives Matter: Consumers may not just be flaunting status—they’re signalling competence or reliability, especially in high-stakes social or professional arenas.
Scarcity Sells: Products perceived as hard-to-get still evoke primal admiration; limited editions tap into ancient competition for resources.
Subtle Signals Trump Obvious Ones: In markets saturated with luxury options, subtle, refined exclusivity (e.g., custom or artisan design) may be the most compelling signal.
Understanding these evolutionary cues can help brands position themselves not just as symbols of wealth but as markers of enduring human values.
Photo by Oliver Sjöström
As ever, if there's anything we can help with, do get in touch.
James, Patrick and Dan
We practically apply the science of the human mind for hard, commercial results
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