The simple fact is most CEOs and IROs try to influence investor behavior using logic and numbers because that’s what they think they’re supposed to be doing.
Modern research in the fields of neuroeconomics and behavioral economics tells us that it’s emotions that drive investment decisions, not numbers and information and if you want to attract and engage investors there is a better way than dry press releases and presentations.
With that in mind, here are 5 facts about emotion and investor behavior every CEO and IRO needs to know.
1.) Purchase intent is determined by emotions experienced during the investors journey based on judgements.
2.) It is emotion, not information, that moves investors from interest and intent to the act of buying.
3.) Emotions have greater influence on investor loyalty than trust and other judgments based on brand attribute.
4.) Positive investor- company emotional relationships must be nurtured to be sustained long-term.
5.) Most emotional response and processing occurs unconsciously.
These are just a few “must know” facts about emotion. For information about how your company can learn more about emotion and how it can be used to make your marketing and communication strategies more effective, please contact Investor Testing today.