Niraj Dawar [Archive.org URL]

When customers … come across a new product, their cognitively economical approach is to try to classify it, to sort it into a familiar bin or category, so they can make sense of it in familiar terms. If they can do this, they can efficiently apply existing knowledge. For example, coming across a bean bag for the first time, a customer might be confused. But classifying it as a chair clarifies its purpose and usage. This classification is an example of a process called categorization. Categorization is one type of mental organizing framework that consumers use to make sense of the world around them, including the marketplaces in which they work, live and play.

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