Today on Marketing Science Lab, we're diving deep into the world of rankings. Not just the "who's number one" kind of rankings, but the mind-bending psychology behind how those rankings really mess with our heads.
You see, we often view rankings as a static snapshot in time. But rankings are constantly shifting, and all that movement can drastically change our perception of the entities being ranked.
To unpack this fascinating phenomenon, we're dissecting a research paper that analyzed data from the black hole of rankings itself – Ranker.com. The researchers wanted to understand how changes in rankings influence consumer behavior (Pandey, 2024).
Up is Good, Down is Bad (Even for Fake Companies)
The study found that anything moving up in the rankings, even slightly, got significantly more attention, more upvotes, and fewer downvotes. It's like we automatically assume if something's trending upwards, it must be good.
But here's the kicker – the researchers took it a step further by running a Google AdWords experiment using a completely made-up online learning platform called Sigma. They crafted three ads:
Neutral: Simply stating Sigma was ranked 13th.
Downward Trend: Sigma had plummeted from 4th to 13th.
Upward Trend: Sigma had climbed from 22nd to 13th.
The results? Clicks fell off a cliff for the downward trend ad, mirroring Sigma's "ranking" demise. But for the upward trend ad? People not only clicked more, but they actually signed up for more information about this fictitious company!
Why We Fall for the "Rising Star" Effect
The researchers dubbed this phenomenon psychological momentum. Our brains love patterns and crave the easy way out. So, when something's got that upward momentum, our brains jump to the conclusion that it must be good, even if it's objectively no different from something that's consistently been good all along.
But the study didn't stop there. It went on to explore the why behind this psychological momentum, uncovering some fascinating nuances:
Locus of Attribution: The effect is amplified when consumers believe the entity is directly responsible for the upward trend (e.g., a hotel that renovated and hired amazing staff) versus attributing the rise to external factors (e.g., a hotel climbing the ranks because competitors closed down).
Entity Malleability: The effect is stronger for entities perceived as more malleable and capable of change (e.g., a tech company constantly innovating) versus those perceived as less adaptable (e.g., a traditional bank with established practices).
Frequency of Update: The impact of rank change is greater when the rankings are updated less frequently (e.g., yearly rankings) compared to more frequent updates (e.g., daily rankings). Frequent updates make the changes seem less significant.
The Twist: Not All Trends Are Created Equal
Study 7 threw a fascinating curveball by investigating what happens when there's no clear trend in the rankings. It turns out that when presented with a non-linear trajectory, consumers resort to averaging the past ranks to evaluate the entity.
Key Takeaways for Marketers
This research holds some powerful implications for marketers:
Highlight Your Growth: Emphasize areas where you've shown consistent improvement and growth. Let consumers see that upward trajectory.
Own Your Success: When you rise in the rankings, attribute it to your efforts and internal improvements.
Strategically Frame Declines: If you experience a dip, consider framing it within the context of external factors or emphasize your core, non-malleable strengths.
Think Long-Term: Less frequent, more impactful updates to your rankings can create a stronger sense of momentum.
The Bottom Line: It's not enough to just be good. To truly win the rankings game, you've got to be seen as getting better.
Interactive Study Guide: https://quizlet.com/study-guides/the-psychology-of-dynamic-rankings-in-marketing-ad073a63-ae14-41c5-950a-9abcaae6755e?i=3i62em&x=13qt
Reference:
Pandey, A., Tripathi, S., & Jain, S. P. (2024). Past Imperfect or Present Perfect? How Dynamic Ranks Influence Consumer Perceptions. Journal of Marketing Research, 0(0). https://doi.org/10.1177/00222437241248660
Share this post