The psychology is pretty extensive in this case but one of the points I think we should definitely mention (aside form advertising and marketing) is that humans naturally want to belong to a group. We constantly seek out differences or things in common so we can decide where we belong. So brands offer us a way to say... "these are the values I want to align myself with" whether that is quality, specs, vision, design, corporate social responsibility or whatever is all up to the person that decides to 'join the group'...
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True. Being apart of a group is an important part in how people make their life decisions. Not just in brands, but in every aspect of life this can be a factor. Especially when we view things like political or religious preferences. I often see people in interviews struggling with the "why" question when asked about their beliefs.
As you said, it's about belonging to and identifying with the values of a group in these cases, rather than individuality.
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