CLASSIC PHYSICAL TIPS When Valuing US Products
In the book “How Consumers Think” – roughly translated “What consumers think”, author Gerald Zaltman argues that up to 95% of consumers make purchasing decisions stemming from their own subconscious. That means, if the seller does not understand the emotions and beliefs that drive customers to buy, it will be difficult for them to sell. Therefore, pricing products based on buyer psychology is a very important strategy in helping businesses increase sales.
The following are four psychological tricks that are considered “classic”, which can create powerful effects, motivating consumers’ shopping behavior. Let’s find out together!
1. CREATE THE BASE EFFECT
This is a trick used by many famous brands in their marketing strategy. Instead of setting a specific price so that customers have only one choice, we will offer many different prices and options. This allows customers to compare and weigh in choosing which products they should buy and at what price is the best.
For example, when you walk into a movie theater and see the following two prices for popcorn: Small Popcorn – 25,000 VND, Large Popcorn – 55,000 VND. At that time, you might think that you don’t need a large corn, just a small one is enough, simply because it’s cheap.
But what if you have a third choice: Small Popcorn – 25,000 VND, Medium Popcorn – 45,000 VND, Large Popcorn – 55,000 VND. In this case, most people will opt for the large popcorn. The reason is because the difference between medium and large is only 10,000 dong and we think we have just bought an item at a very good price.
The price in the middle at this time seems useless and does not bring any value, but in fact has a strong impact on customers. It has implicitly changed the customer buying behavior from “finding cheap goods” to “finding valuable goods.” This can motivate customers to buy goods according to the seller’s wishes, helping families increase sale revenue.
2. SELL BY PRICE "FULL PACKAGE"
According to a study by two Stanford and Carnegie Mellon universities in the US, it has been concluded that: When faced with a high price, the human brain will react as if they have to accept a “pain” “and when the price drops, the brain will now begin to form a buying decision.
Bundle pricing can reduce customer “pain” in shopping. Putting multiple products in the same package with a common price makes it impossible for buyers to evaluate each item individually at a specific price. This trick is often used to sell high-end items.
One of them can be mentioned in the car sector. Car price lists often include additional products and services such as GPS navigation systems, sunroofs, carpets, etc. Microsoft also applies this pricing method to office applications. Rooms like Microsoft Office Suite… McDonald’s also uses this trick with their expensive dishes.
Businesses must be very cautious with bundle pricing because customers may spend less or refuse to buy if product bundles are not matched correctly and correctly. For example, combining products into one package must not reduce the value of each product. For example, combining a high-priced product with a low-cost product should be avoided as research results also show that consumers will spend less on such packages.
3. ANNOUNCEMENT EFFECT
The anchor effect is one of the most widely used psychological tricks. According to studies, usually the buyer’s subconscious will “emit” a reference price before starting to make a purchase decision and from there they will judge whether the seller’s price offered is high or low. . Price is a relative matter, if businesses can capture and influence the reference price of buyers, they will most likely easily accept the offering price offered by the business.
For example, we can easily see old price lists crossed out in retail stores. For example, the price “19.89 USD” will be deleted and followed by the price “16.89 USD”. In this way, the price “19.89 USD” was “anchored” in the mind of the buyer and thus “16.89 USD” was considered the best price for them.
The anchor effect will begin to happen based on the first information a buyer receives in the buying decision process. If the seller offers and introduces the most expensive products first, this will have the same effect because the buyer will now remember or be “anchored” of that first price and it will be the first price. reference for later prices.
To use this tactic effectively, businesses need to pin down the price they want to “anchor” in the customer’s mind and figure out how to set it as the first price they can hear or see.
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