It's Wednesday. Google launches AI tools that tap into visual psychology, fashion brands showcase classic loss aversion behavior under tariff pressure, and OpenAI's massive user base reveals the psychology of freemium expectations.
Google's new AI tools reveal the psychology behind visual commerce
At its Marketing Live event, Google introduced AI-powered tools to help retailers streamline content creation, but the real story is about buyer psychology.
The new lineup:
Asset Studio: Upgrades basic product images into polished lifestyle visuals using AI
Image-to-Video: Turns static images into short videos for multiple platforms
Brand Profiles: Controls how brands appear across Google surfaces
Why the psychology matters: Google recognizes that consumers process visual information 60,000 times faster than text. The shift to "lifestyle visuals" taps into aspirational psychology — buyers don't just want products, they want the lifestyle those products represent.
"A lot of the work our tools are doing is the digital equivalent of laundry," said Jyotika Prasad, senior director of retail ads at Google. But it's really about removing friction from creating the social proof and lifestyle imagery that drives purchase decisions.
What this means for brands: Visual storytelling isn't just marketing — it's psychology. Consumers make emotional purchases and justify them rationally later. These AI tools help smaller brands compete with larger ones by creating the polished, lifestyle-focused content that triggers emotional connections.
The tools roll out to U.S. sellers in coming months.
🤝 Supported by Shipfusion
Getting someone interested in your coffee is one thing. But getting that order across the finish line–on time, well-packed, and worth reordering–is another.
We ordered from 40+ DTC coffee brands to see how the post-purchase experience really holds up. From checkout to delivery to unboxing, we tracked it all. The results? Missed opportunities, delays, and broken experiences that are costing brands repeat customers.
This first-of-its-kind report breaks down where brands are winning, where they’re falling short, and what you can do to build loyalty and boost retention.
In this report we cover:
Checkout experience
Fulfillment speed + accuracy
Shipping timelines + carriers used
Packaging quality + unboxing moments
Post-purchase communication
What brands are getting right—and where they’re losing customers
Want to see how your brand compares? Read the report.
Fashion brands demonstrate textbook loss aversion under tariff uncertainty
Haley Pavone, CEO of shoe brand Pashion, planned a $1 million inventory order for fall. Instead, she's cutting that to $350,000 — a perfect example of loss aversion psychology in action.
Why the psychology matters: When faced with uncertain losses (tariffs ranging from 36% to 75%), brands are exhibiting classic loss aversion behavior. Research shows people feel losses twice as intensely as equivalent gains, which explains why brands are cutting orders dramatically rather than taking calculated risks.
"We're having to cut ourselves off at the knees," Pavone told Modern Retail. "I want to make sure I have enough budget left over to pay whatever the tariff is — could be 200% for all I know."
The behavioral patterns emerging:
Risk aversion amplification: Brands ordering 500 units instead of 1,000, prioritizing certainty over growth
Anchoring bias: M.M.LaFleur is exploring alpaca wool from Peru, anchoring to "safer" supply chains
Loss-framed decision making: Wild Rye raised bike shorts from $129 to $159 (23% increase), passing losses to consumers
What this means for brands: Consumer psychology during uncertainty follows predictable patterns. Shoppers experiencing economic anxiety often exhibit stockpiling behavior (buying more now to avoid future price increases) or complete avoidance. Understanding which segment your customers fall into determines your pricing and inventory strategy.
The uncertainty is creating decision paralysis. "It's impossible to plan with this much uncertainty," said Wild Rye founder Cassie Abel — a classic example of choice overload in high-stakes decisions.
OpenAI's freemium psychology reveals the future of conversational commerce
OpenAI's business model challenges reveal fascinating insights about freemium psychology and the future of buyer behavior.
Why the psychology matters: Only 4% of ChatGPT's 500 million weekly users pay for subscriptions. This isn't a failure — it's textbook freemium psychology. The vast majority of users create value through data and engagement, while a small percentage monetize directly.
The company told investors it won't turn a profit until 2029 and expects to lose $44 billion along the way, but they're building something more valuable: behavioral data on how people naturally interact with AI to make decisions.
The behavioral shift happening: OpenAI hired Meta's monetization architect (Fidji Simo) and recently rolled out shopping features with personalized product recommendations and direct purchase links. This represents a fundamental shift from search-based intent to conversational commerce.
"ChatGPT's power lies in conversation, not clicks," said Chris Pearce at search specialist Greenpark. "That opens the door to intent-led, native ad formats that feel more like recommendations than banners."
What this means for brands: Conversational commerce changes buyer psychology. Instead of searching for products, consumers are asking for advice. This creates opportunities for brands that understand how to integrate naturally into advisory conversations rather than interrupting them with traditional ads.
The shift from "show me options" to "help me decide" represents a fundamental change in how purchase decisions are made. Brands that adapt their marketing psychology to feel consultative rather than promotional will have an advantage.
Bottom line: As dominant platforms become more expensive and regulated, OpenAI represents a frontier where buyer psychology is still forming. Early movers who understand conversational psychology will shape how future commerce happens.
