14 cents are not always 14 cents – and zero is often more

Psychologist and behavioural economist, Dan Ariely, and colleague Kristina Shampan’er examined the power of the word FREE. They undertook a series of experiments involving two scenarios: Scenario 1 – a quality chocolate priced at 15 cents and a cheaper chocolate priced at 1 cent Scenario 2 – a quality chocolate priced at 14 cents and […]

Psychologist and behavioural economist, Dan Ariely, and colleague Kristina Shampan’er examined the power of the word FREE. They undertook a series of experiments involving two scenarios: Scenario 1 – a quality chocolate priced at 15 cents and a cheaper chocolate priced at 1 centScenario 2 – a quality chocolate priced at 14 cents and a cheaper chocolate priced FREE In the first scenario, the quality chocolate significantly outsold the cheaper one. In scenario 2, sales of the cheaper chocolate significantly exceeded the quality product. This was despite the fact that: The same chocolates were used in both scenariosThe price difference was identical in both scenarios This experiment provides a compelling insight into the power of the word FREE and the concept behind it. Surprising or not, this finding also demonstrated: The fact that human beings are irrationalThe power of consumer insight research Volumes have been written on consumer insights gathered…

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Five Tips For Reducing
The Cost Of Branding.

Burning money on branding is more common than most marketers think. Because few businesses truly understand what a brand is and how branding works, advertising agencies, branding agencies and design studios have become expert at spending their client’s money without effective accountability.

Burning money on branding is more common than most marketers think. Because few businesses truly understand what a brand is and how branding works, advertising agencies, branding agencies and design studios have become expert at spending their client’s money without effective accountability.

1. Get out of the boardroom.

Perhaps the two most concerning issues about branding are the lack of understanding about what brand and branding are and the propensity to develop brands in the boardroom, perhaps with the help of a consultant.....

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