Behavioral Economics
8
 minute read

Boundary Extension: Extending Perceptual Boundaries Beyond Actual Scenes

Published on
August 28, 2024

1. Introduction to Boundary Extension

Imagine a customer who views a promotional image and perceives more context or detail than what is actually presented. This phenomenon is an example of Boundary Extension, where individuals extend their perceptual boundaries beyond the given visual scene. In Customer Experience (CX), understanding boundary extension is essential for designing visuals and content that effectively communicate messages and manage customer expectations.

2. Understanding Boundary Extension

Boundary Extension refers to a cognitive bias where individuals perceive a visual scene as containing more information or context than is actually present. Psychologically, this effect occurs because the brain fills in gaps beyond the visible edges of a scene, based on prior knowledge and expectations. In everyday decisions, boundary extension can influence customer perceptions of products, services, or experiences, leading them to infer additional attributes or qualities that may not exist.

  • Impact on Customer Behavior: Customers influenced by boundary extension are likely to form perceptions that extend beyond the presented information, potentially shaping their expectations and decision-making.
  • Impact on CX: In Customer Experience (CX), boundary extension can enhance engagement and satisfaction if managed well, but it can also lead to disappointment if customer expectations are not met due to overextended perceptions.
  • Impact on Marketing: Marketing strategies that leverage boundary extension can create compelling visuals that engage customers, but they must be careful to manage expectations to avoid misperceptions and dissatisfaction.

3. How to Identify Boundary Extension

Identifying Boundary Extension in customer interactions and marketing strategies involves several approaches:

  • Customer Feedback on Visuals and Expectations: Collect feedback specifically related to customer perceptions of visuals and whether their expectations matched reality, revealing the influence of boundary extension.
  • Surveys on Perceptual Accuracy: Conduct surveys to assess customer perceptions of visual content and how accurately they interpreted the intended message, identifying boundary extension tendencies.
  • Behavioral Analysis of Content Engagement: Monitor customer engagement with visual content to identify patterns that suggest the influence of boundary extension, such as overestimation of product qualities.
  • A/B Testing for Visual Impact: Test different visual styles and content presentations to determine which approaches most effectively manage boundary extension and enhance engagement and satisfaction.
  • Customer Journey Mapping with Visual Indicators: Integrate visual indicators into customer journey maps to identify stages where boundary extension is most likely to influence perceptions and decisions.

4. The Impact of Boundary Extension on the Customer Journey

Boundary Extension can affect multiple stages of the customer journey, particularly where visual content and customer expectations are crucial:

  • Research: During the research stage, boundary extension can lead customers to form perceptions based on visual content that extends beyond the actual information presented, influencing initial interest and expectations.
  • Exploration: In the exploration phase, customers influenced by boundary extension may engage more with visually compelling content, potentially developing inflated expectations based on perceived context.
  • Selection: At the selection stage, boundary extension can influence customers to choose products or services based on overextended perceptions, enhancing satisfaction if managed well but potentially leading to disappointment if expectations are not met.
  • Purchase: During the purchase phase, boundary extension can affect satisfaction if the visual content aligns with the actual product or service experience, reducing cognitive dissonance and increasing the likelihood of purchase completion.
  • Onboarding/First Use: Boundary extension can impact the onboarding experience if customers' initial perceptions are overly optimistic due to extended visual cues, reducing satisfaction if reality does not match expectations.
  • Loyalty: Boundary extension can enhance loyalty by creating strong visual connections and expectations, but it can also reduce loyalty if customer expectations are consistently unmet due to overextended perceptions.
  • Referral and Advocacy: Customers influenced by boundary extension are more likely to advocate for brands that deliver on visually created expectations, amplifying the impact of customer-driven marketing.

5. Challenges Boundary Extension Can Help Overcome

Understanding and leveraging Boundary Extension allows businesses to address several challenges:

  • Enhancing Visual Engagement: By recognizing and optimizing boundary extension, businesses can increase engagement by creating visually compelling content that captivates customers.
  • Improving Customer Satisfaction: Managing boundary extension effectively can enhance satisfaction by aligning visual content with actual product or service experiences.
  • Reducing Misperceptions: Leveraging strategies to manage boundary extension can reduce misperceptions and ensure that customer expectations are met, enhancing trust and credibility.
  • Building Strong Visual Branding: Optimizing boundary extension can build strong visual branding by creating memorable and engaging content that resonates with customers.

Relevant Challenges:

  • Visual Engagement, Satisfaction, Misperception, Trust, Credibility, Expectations, and Branding are areas where understanding and addressing boundary extension can enhance the customer experience by managing perceptions and expectations.

6. Other Biases That Boundary Extension Can Work With or Help Overcome

Enhancing Biases:

  • Halo Effect: Boundary extension can enhance the halo effect, where a positive initial impression influences subsequent perceptions of all aspects of a brand or service.
  • Confirmation Bias: Boundary extension can strengthen confirmation bias, where customers favor information that aligns with their extended perceptions and expectations.
  • Priming Effect: Boundary extension can reinforce the priming effect, where initial visual cues influence subsequent thoughts and behaviors.

Overcoming Biases:

  • Negativity Bias: Using positive and supportive visuals can help overcome negativity bias by focusing customer attention on favorable aspects and reducing the impact of negative perceptions.
  • Ambiguity Aversion: Clear and precise visuals can reduce the impact of ambiguity aversion, where customers avoid options that are unclear or ambiguous.
  • Framing Effect: Providing balanced and clear visual content can reduce the impact of the framing effect, where decisions are influenced by how information is presented.

7. Industry-Specific Applications of Boundary Extension

  • E-commerce: Online retailers can leverage boundary extension by using compelling visuals that engage customers and create strong perceptions, enhancing engagement and conversions.
  • Healthcare: Hospitals can address boundary extension by using clear and supportive visuals in patient communications, enhancing satisfaction and trust.
  • Financial Services: Banks can leverage boundary extension by using visuals that align with customer needs and expectations, enhancing engagement and satisfaction.
  • Technology: Tech companies can reduce boundary extension by using clear and supportive visuals in user interfaces and product presentations, enhancing customer satisfaction and retention.
  • Hospitality: Hotels can address boundary extension by using visually appealing and accurate images in marketing materials, enhancing guest satisfaction and loyalty.
  • Education: Educational institutions can leverage boundary extension by using compelling visuals that resonate with prospective students, enhancing engagement and enrollment.
  • Telecommunications: Telecom companies can mitigate boundary extension by using clear and supportive visuals in customer communications, enhancing satisfaction and loyalty.
  • Real Estate: Real estate agents can address boundary extension by using accurate and compelling visuals in property listings, enhancing satisfaction and retention.
  • Automotive: Car dealerships can leverage boundary extension by using compelling visuals that align with customer expectations, enhancing engagement and satisfaction.
  • Retail: Retail stores can cater to boundary extension by using visually appealing and accurate product presentations, enhancing loyalty and reducing churn.
  • Pharmaceuticals: Pharmaceutical companies can address boundary extension by using clear and supportive visuals in patient communications, enhancing satisfaction and trust.
  • Utilities: Utility companies can mitigate boundary extension by using clear and supportive visuals in customer communications, enhancing satisfaction and loyalty.

8. Case Studies and Examples

  • E-commerce Example: Etsy
    Etsy leverages boundary extension by using compelling visuals that engage customers and create strong perceptions, enhancing engagement and conversions.
  • Healthcare Example: Mayo Clinic
    Mayo Clinic addresses boundary extension by using clear and supportive visuals in patient communications, enhancing satisfaction and trust.
  • Financial Services Example: Fidelity
    Fidelity leverages boundary extension by using visuals that align with customer needs and expectations, enhancing engagement and satisfaction.
  • Technology Example: Microsoft
    Microsoft reduces boundary extension by using clear and supportive visuals in user interfaces and product presentations, enhancing customer satisfaction and retention.

9. So What?

Understanding Boundary Extension is crucial for businesses aiming to enhance Customer Experience (CX). By recognizing and managing this bias, companies can create visually compelling content that effectively communicates messages and manages customer expectations. Leveraging boundary extension helps ensure that customer experiences are engaging and aligned with visual perceptions, fostering satisfaction and loyalty. Integrating strategies to manage boundary extension into your CX approach can differentiate your brand and build stronger relationships with your customers. Learn more about how to leverage boundary extension in your customer experience strategy with our Customer Experience services and explore the benefits of Behavioral Economics in CX for enhancing visual engagement and satisfaction.

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Behavioral Economics
Aslan Patov
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