Podcast Summary: James Reed: All About Business — Ep 54: "The Secret Psychology Brands Use to Influence Consumer Habits" with Raphy March

Date: November 24, 2025
Host: James Reed CBE, Chairman and CEO of Reed Group
Guest: Raphy March, Managing Director, Cowrie Consulting

Overview

In this episode, James Reed welcomes Raphy March, Managing Director at Cowrie Consulting, an award-winning behavioral science consultancy. The conversation dives into how behavioral science and AI intersect to shape consumer habits, the ethics of behavioral interventions, the role of subconscious biases in decision-making, and practical ways brands use psychology to enhance customer experience and loyalty.

Raphy shares actionable insights from real-world projects, explains key psychological concepts, discusses ethical frameworks, and highlights the ever-evolving role of AI in understanding and shaping human behavior at scale.

Key Discussion Points & Insights

1. The Foundations of Behavioral Science

• Definition & Purpose
  • Behavioral science studies why humans think and act the way they do, digging into both consumer and employee behavior.
    • Quote: “Behavioral science is a way of understanding why humans think and act in the way that they do.” — Raphy [02:03]
• Bias & Irrationality:
  • Humans rarely make decisions solely on logic; we rely on mental shortcuts and behavioral biases due to decision overwhelm.
  • Behavioral science reframes choices and gently guides better outcomes — not manipulation, but “nudge” tactics.

2. Real-World Applications

• Healthcare & Stigma
  • Example: Improving medication adherence and reframing illness to combat daily reminders and stigma (e.g., HIV medications).
    • Quote: “That constant daily reminder that you have an illness… can be quite demotivating or draining” — Raphy [06:52]
  • Temptation Coupling: Pairing a challenging task (taking medication) with a pleasurable one (buying a snack) to boost compliance.
• Public Sector Nudges
  • Discussion of the UK’s “nudge unit” and how governments use subtle behavioral cues in public health, with a focus on positive impact and the limitations of nudging.

3. The Power of Framing

• Positive vs. Negative Framing
  • Example: Job adverts with “90% successful” vs. “10% unsuccessful” — people gravitate to positively framed statistics.
    • Quote: “That’s what behavioral science does: it reframes information in a way that helps you make more informed choices.” — Raphy [11:11]

4. Business Case Studies

• Northern Rail: Cleanliness Perception
  • Audited factors influencing perceptions of train cleanliness — not just objective reality, but elements like scent (lavender = relaxed, perceived clean) and lighting (warm = cozy, thus cleaner).
    • Quote: “If you are more calm as a person, your perception of your environment is that things are more calm and then things are more clean.” — Raphy [14:40]
• Keep Britain Tidy: Cigarette Littering
  • Tackled “bin blindness” — after nicotine, smokers don’t notice bins. Used behavioral interviews & campaigns targeting subconscious habits, combining creative (with VCCP) and scientific insights.

5. Behavioral Insights in the Private Sector

• Brand Work: From Amazon to Tesco
  • Helped brands go beyond functional benefits to tap into deeper emotional drivers of loyalty, using tools like implicit response testing.
  • Tesco Case: Identified “emotional holes” not addressed by discounting strategies.
    • Quote: "There was a glaring hole ... these more emotional factors that meant people were less likely to use Clubcard." — Raphy [46:11]
• Sales & Service Optimization: Sky
  • Improved customer retention by empowering call center staff with cues of authority and adjusted scripts, boosting trust and retention.
    • Quote: "By just using that one introduction that builds the authority... the likelihood of retaining that customer is increased by 13%." — Raphy [39:36]

6. Ethics and the “Power” of Behavioral Science

• Clear internal ethical code: Only recommend interventions they’d use themselves.
  • Quote: “We would only do to others as we would do to ourselves.” — Raphy [25:48]
• Case: Encouraging annual leave use to prevent burnout, by defaulting holidays into calendars.

7. Practical Behavioral Science Tips

• The Pratfall Effect:
  • Showing minor flaws or “humanness” increases likability (e.g., in job interviews or restaurant complaints).
    • Quote: “If you are absolutely perfect... you come across as less human. Pratfall effect: a small flaw makes you more genuine.” — Raphy [29:26]
• Persuasion & Negotiation:
  • Use physical evidence (heavy documents showcase effort), bring warm drinks to create positive emotional warmth, use intelligent font/print choices for impression management.

8. Visual Authority & Trust-Building

• Use visuals (certificates, awards, star ratings) and concise, positive messaging to signal trust and experience (“Since 2002”, Trustpilot ratings).
  • Quote: "If you can communicate it visually, that’s even better, because 50% of our cortex is dedicated to visual processing." — Raphy [41:31]

9. AI and Behavioral Science

• Cowrie is refocusing on “behavioral intelligence” powered by AI — using psychology to inform data models and predict behavior at scale.
• AI can now process emotional expressions and complement (not replace) human behavioral analysis in research/interviews.
  • Quote: “Behavioral science is excellent at understanding how people think and make decisions, but what AI and data allows us to do is… predict and look forward at what people will do and do that at scale.” — Raphy [49:05]
• Importance of embedding empathy and behavioral expertise in AI development, both for ethical use and practical human alignment.

10. Trust, Apology, and Recovery

• Formula for regaining trust after brand missteps:
  • Genuine apology with explicit “sorry”
  • Acknowledgement of emotions/impact
  • Concrete actions for resolution
  • Quote: "Not necessarily being empathetic, but being compassionate… signposting them to the things we can do to resolve it." — Raphy [61:18]
• Trust equation: credibility, consistency, reliability, minimized ego.

11. The Future of Behavioral Science & AI

• Demand for behavioral scientists and data-savvy psychologists is growing, especially to “humanize” AI.
• Behavioral intelligence will move from small nudges to influencing large-scale societal transformation.
• Raphy’s wish: To expand Cowrie Consulting globally and push for more behaviorally intelligent advertising and product experience.

Notable Quotes & Moments (with Timestamps)

• On behavioral science vs. classical economics:
  • "Assume a rational maximizer... they're all based on a false premise because we're not rational maximizers." — James [03:26]
• On reframing and positivity:
  • “I'd be going for the 90% personally... because it feels positive.” — James [10:13]
• On bin blindness:
  • “When you smoke a cigarette, the nicotine actually hacks your brain… you are less aware of things in your direct surroundings. Gives you bin blindness.” — Raphy [18:31]
• On the Pratfall effect:
  • “If you are absolutely perfect... you actually come across as less human… small flaw or inadequacy, you come across as more genuine.” — Raphy [29:18]
• On using visual cues for authority:
  • “50% of our cortex is dedicated to visual processing... it's just 13 milliseconds to understand an image.” — Raphy [41:31]
• On AI’s promise and pitfalls in behavioral research:
  • “We are helping clients make sure [AI] is based on how humans make decisions... what AI and data allows us to do is predict and look forward at what people will do, and do that at scale.” — Raphy [49:05]
• On apology and regaining trust:
  • "There is such a thing as a perfect apology—genuine, explicit, acknowledging the emotions and then rectifying the issue." — Raphy [60:49]
• On optimism in AI:
  • “There is a healthy level of fear with new technology... but I also think there is a world of opportunity.” — Raphy [65:15]

Timestamps of Key Segments

• [00:00–02:03] — Introduction to Raphy March and behavioral science
• [06:01–07:11] — Temptation coupling and habits in health
• [08:21–11:27] — Government nudges, reframing in recruitment
• [11:48–16:14] — Northern Rail case: Subjective cleanliness, sensory cues
• [16:44–22:24] — Keep Britain Tidy: Bin blindness and smokers, facial expression analysis
• [25:10–28:10] — Ethics in behavioral interventions, annual leave defaults
• [29:18–31:05] — Pratfall effect and restaurant complaints
• [31:35–33:35] — Negotiation hacks (e.g., getting a pay rise), using heavy documents and warm drinks
• [34:42–39:39] — Sky case study: Cues of authority, retention results
• [43:00–46:11] — Implicit response tests, emotional vs. functional brand value (Tesco)
• [48:02–52:45] — AI integration in behavioral science, complementing human skills
• [60:49–62:26] — Building trust and the psychology of apology
• [66:03–67:17] — Raphy on what motivates her and Cowrie’s future
• [67:17–end] — Closing

Conclusion

This episode offers a lively, insightful exploration of how brands (and governments) use behavioral psychology not just to “nudge,” but to genuinely improve experiences and outcomes for consumers and employees. Raphy makes a compelling case for blending science, ethics, and empathy in business strategy — and sets out a vision for AI-powered, human-centered behavioral intelligence as the next frontier.

Whether you’re in marketing, leadership, service, or tech, the lessons here are powerful, practical, and grounded in both rigor and real-world results.