Understanding System 1 vs System 2 thinking for product development


Gain a deeper understanding of consumer behaviour and decision-making processes based on system 1 and system 2 thinking. Design better products that nudge consumers towards them. 

Explore system 1 vs system 2 thinking and how you can leverage a dual process model for product success.

Understanding how consumers make decisions

Behavioural science can help us better understand how and why consumers act in certain ways. It provides insight into consumer decision-making through the lens of behavioural economics and shopper psychology. 

A psychological theory called the dual process model categorises human decision-making into System 1 and System 2 responses. Commonly referred to as fast and slow thinking, these two systems are how we process information and make decisions. Cognitive scientist Daniel Kahneman popularised these mental processes in his 2011 work, Thinking, Fast and Slow.

What is system 1 thinking?

System 1 thinking refers to fast, automatic responses based on unconscious processes and shaped by prolonged practice. This way of thinking relies on cognitive biases and innate skills to generate initial reactions quickly. 

System 1 responses generally require little or no effort, allowing people to make rapid decisions and snap judgments. Despite being automatic, these responses can include surprisingly complex patterns of thought and behaviour.

What is system 2 thinking? 

System 2 thinking refers to slow, deliberate responses based on conscious reasoning. Unlike the automatic processes of System 1, only the slower System 2 can create a logical thought process. 

This type of thinking helps us construct thoughts and engage in complex, effortful mental activities. System 2 thinking requires conscious attention to solve problems and make decisions. 

Although these responses are similar to the idea of the ‘analytical left side’ of the brain, it is important to note that Systems 1 and 2 do not represent our actual brain structure. 

The dual system approach

Both system 1 and system 2 thinking are essential for our cognitive processes and decision-making. Our unconscious system 1 responses complement our system 2 analysis, combining automatic thinking with logic-based reasoning. 

Constantly questioning our own thinking with System 2 is a time-consuming process that is not viable for everyday life. Rather, the human mind automatically relies on mental shortcuts for intuitive decision-making. Many dual process theories outline how System 2 responses often rely on and adopt System 1 ideas with little or no modification. 

It’s a common belief that system 1 thinking is inherently biased. However, both systems are prone to systematic errors and significant mistakes. A useful example is confirmation bias. We often remember information (system 1) and process it (system 2) in ways that support our existing beliefs. 

Behavioural research for product development

An in-depth knowledge of system 1 and 2 thinking can help you better understand consumer behaviour and decision-making. You can use these insights to optimise your development and marketing processes for product success. 

In the past, consumer research has prioritised system 2 thinking. However, consumers usually rely on impulsive System 1 responses when making purchases. Effective product development should aim to target both responses for increased success. 

Vypr’s product intelligence platform uses steers to encourage fast System 1 reactions from community members. This robust data provides additional insights to help inform your product decisions. 

What is nudge theory?

Nudge theory is a prominent concept in behavioural economics. It focuses on how subtle changes in a specific environment can influence ‘choice architecture’. This can guide (nudge) people’s behaviour without restricting their choices. Nudges are often used to help people make better choices for themselves and society.

You can find lots of nudge theory examples in everyday life. For example, supermarkets often display fruit and vegetables at eye level to encourage healthier eating habits. 

What is nudge marketing?

Businesses can leverage consumers’ system 1 responses with nudge-based marketing strategies. These efforts can help guide consumer behaviour, enhance user experiences and increase sales. 

A common example of nudge-based marketing is the use of product badges to highlight different products and their unique selling points. This nudges consumers towards specific items and helps streamline their decision-making process. 

Vypr: Make better decisions faster

Vypr is the world’s leading product intelligence platform that enables businesses to rapidly understand changing consumer behaviour through fast, cost-effective consumer insight. 

Understand system 1 vs system 2 thinking for more insight into how consumers make decisions. Optimise your product development based on robust behavioural research. 

Refine your product decisions with access to fast, system 1 responses. Try Vypr now.