The wait is almost over but for what? How Apple generates demand by exploiting the power of marketing and cognitive biases
The same as every year, Apple will soon announce their new iPhone. And the same as almost every year, the new device will be almost identical to the “old” version. At least on the outside, the differences will be rather minor. So how does Apple create hype and demand for something that’s essentially a carbon copy of the previous version?
The simple answer is by leveraging the power of marketing and various cognitive biases
In the following paragraphs, let’s briefly examine some of the marketing tricks and cognitive biases that Apple feeds off in its promotion of new iPhones (and other products) and, by doing so, keeping us, consumers, engaged.
By the way, Apple is not the only company doing this. I chose Apple because I am myself exploiting an availability bias here. I’m clearly taking advantage of the readers’ familiarity with Apple and the fact that Apple’s marketing team is doing their job so incredibly well.
1. The secrecy and the psychology of waiting
It likely started with Steve Jobs and his love for big theatrical unveilings of new, revolutionary products. It could have been just intuition or paranoia at first on his side, but keeping things secret for as long as possible (basically up to the big launch) worked magic for him and Apple. The secrecy and anticipation-building around the new iPhone (and other Apple products) became the company’s trademark. It is also a clever strategy that incorporates several psychological and marketing principles revolving around secrecy and the psychology of waiting.
The Secrecy
We know that by keeping details about new iPhones under wraps, Apple creates a sense of anticipation and scarcity. The limited availability of information generates heightened interest and desire among many consumers. People tend to value things more when they believe they’re in short supply, whether it’s information about the product or the product itself; tapping into the scarcity effect is an effective way to influence people.
Additionally, Apple’s secrecy creates a “curiosity gap” where consumers wonder about the new features, design changes, and improvements. This gap between what’s known and unknown compels people to seek more information, driving engagement and discussion. It is a very effective way to get everyone talking about new iPhones weeks before their launch. Basically, free publicity and excitement around the new release, leveraging the power of word-of-mouth marketing.
The psychology of waiting
The psychology of waiting is another powerful tool in a marketer’s toolkit. When employed wisely, it can increase the perceived value of a product. The longer people wait, the more they might believe that the product will be worth the anticipation. As long as we deliver something of value at the end, letting our customers wait can be a great way to boost the perceived value of our products or services.
Simply put, by building suspense and curiosity, Apple taps into the emotional biases that make people more likely to remember and engage with the eventual product launch.
2. Anchoring and Framing
The Apple keynotes and product announcements, especially those older ones run by Steve Jobs, are legendary. Apple’s theatrical product announcements are good examples of how to anchor the narrative around new features and incremental improvements.
By controlling the information flow, Apple frames the narrative to highlight the positive aspects of the new devices, potentially influencing perceptions through the anchoring and framing effects. For example, Apple tends to announce the new iPhone at a higher price point and then presents other models as more affordable alternatives. This leverages the anchoring bias, where the first piece of information (the high price of the flagship model) becomes an anchor against which other prices seem more reasonable.
Framing Effect
Apple frames the new iPhone’s features and capabilities in ways that highlight their practical benefits. They emphasise how these features can improve customers’ daily lives, which taps into the framing effect — people’s decision-making is often influenced by how information is presented to them rather than by the data itself.
Good marketing messaging not only talks to customers’ needs and desires but also creates them.
Do we really need that 12 MPX camera? If not for Apple’s keynote, followed by the marketing campaign and media hype, most people would probably answer NO at first. Good marketing messaging re-frames pixels as family memories. As precious moments in our lives are worth preserving for later consumption. Soon, we will realise even though we didn’t want a new iPhone, now we feel obliged to get one so that we can keep those perfect memories for the future ourselves. And we would be doing it not for our love of technology but simply because we love our family and friends. This is how media and big tech skew our perception of reality, including our priorities and sometimes our entire existence. Yes, I’m referring to a phenomenon where taking photos of our little events in life becomes more important than being present and experiencing them first-hand.
3. Scarcity Effect
Apple sometimes creates a sense of urgency and scarcity by emphasising limited quantities or exclusive features. This taps into the scarcity effect, where people tend to value things more when they believe they are in short supply. Whether Apple does it out of necessity, because they have genuine production issues, or because they are deliberately taking advantage of the scarcity effect is almost irrelevant. It works. Limiting supply is also a good way to release new products in a more controlled and safer way. Apple Vision Pro is an excellent example of a product that isn’t available yet, and when it is in 2024, it will be expensive and available only in limited quantities.
4. Social Proof
Apple often highlights the popularity of its products and the enthusiastic user base, appealing to the social proof bias. This bias makes people more likely to adopt something if they believe others are already enjoying it.
Apple often features well-known celebrities or specific groups of users, such as developers or artists, in its marketing campaigns. When consumers see their peers or favourite celebrities using Apple products, it creates a perception that iPhones are not only high-quality but also trendy and desirable. We tend to associate the success and appeal of celebrities with the products they use. Disclaimer: No, you will not become a better programmer or more creative artist by getting a new iPhone.
5. Confirmation Bias
Apple’s marketing materials often focus on the positive aspects of their products and downplay any potential negatives. This aligns with confirmation bias, where people seek information that confirms their beliefs and ignore information that contradicts them. Remember how tech enthusiasts became excited about the new Bluetooth AirPods introduced in 2016 with the iPhone 7? It was perceived as a positive evolution in technology. It also cleverly camouflaged and re-framed the omission of the headphone jack. Despite all the drawbacks and issues it caused, the removal of the essential connector was presented as a step forward and as a user-centric move.
6. Emotional Appeal
Apple often uses emotional storytelling in its marketing, connecting the iPhone with the personal experiences, memories, and emotions of its customers. This emotional appeal can influence decisions by leveraging emotional bias, where decisions are influenced by feelings rather than purely rational thought.
Take Aways
These were just some examples of how Apple effectively uses marketing and cognitive biases in its annual iPhone promotion and announcement strategies. In summary, they employ scarcity bias by limiting initial supplies, triggering FOMO. Anchoring bias is used to set high starting prices and make subsequent models seem reasonably priced. Confirmation bias is encouraged by emphasising features that align with consumers’ preconceptions of Apple’s excellence. Celebrity endorsements leverage social proof, and loss aversion is triggered by time-sensitive promotions. Additionally, the decoy effect is utilised by presenting multiple models, making a preferred choice more attractive.
These tactics collectively create a powerful marketing formula that generates anticipation, desire, and loyalty around each new iPhone release, contributing significantly to Apple’s success.
Remember that these cognitive biases are not unique to Apple; they’re common strategies many companies use in their marketing efforts.
