This Marketing Trick Makes The Price Of Items More Expensive But Still Sold


In business, setting prices is very important. If you set the price too high, I'm afraid no one will buy. On the other hand, if you set a low price, the profit will be small

So, what should I do?

If I tell you, you can charge a high price without fearing the item won't sell, would you believe it? That's what big businesses like Pepsi, Starbucks, etc. do.

In psychology, the marketing trick they do is called the Decoy Effect.

What exactly is the Decoy Effect and how can this marketing trick influence customers to buy more of your product? Let's see the explanation below

Decoy Effect Marketing Tricks

Imagine you bought a washing machine for $300 with 200 watts of power and 5 additional accessories. However, there is another blender for $360 300 watts plus 9 accessories. Which of the two types do you prefer?

If you look at efficiency, washing machines with more expensive prices provide 35% more efficient electricity, even though the price is 70% more expensive than the first blender. Is this efficient?

In the midst of this confusion, you find another blender with a price of $330 300 watts and an additional 7 accessories. This middle option will usually be a wise choice and taken by the customer.

Have you ever been in this case? Congratulations, that means you have been exposed to the Decoy Effect marketing trick.

What is the Decoy Effect?

The Decoy Effect is a psychological phenomenon that occurs in most humans where they will consider two options in front of them according to their needs and needs. However, that choice was broken with the expectation of the arrival of a third option.

More simply, this Decoy Effect is two choices that are deliberately given first. But then, there will be choices that come as 'middlemen'. And usually, this third choice will be the option to be taken.

It is normal for humans to have choices, and this is what we take advantage of.

Because of this understanding, one of the tricks in psychology is used by many entrepreneurs to get their customers to buy the products they are selling.

The presentation of this was first done by three scientists, namely Christopher Puto, Joel Huber and John Payne, through a conference held in 1981. Since then, the use of the Decoy Effect has spread to various fields, including in the business sector.

Customers are always looking for safety. In a sense, they do not want to buy things that are too expensive but also too cheap (for reasons of prestige). To mediate on this, they decided to look for an intermediary option. That's the Decoy Effect.

According to a psychologist named Barry Schwartz, the Decoy Effect occurs because of the complexity or difficulty in making decisions and also avoiding reckless decisions. The term used by Barry is tyranny or paradox of choice.

In short, to reduce the fear of buying products that are too expensive, customers will start simplifying decisions based on their selfishness towards rationality, namely lower prices and more quantity.

Conclusion

This marketing trick is great for your business. Because, you can prevent customers from buying products at the lowest prices. The trick is, you have to give them two options first. After they think, you can throw in the third option.

By using this strategy, you will most likely get maximum results. Because, customers will definitely divert their orders to the last option.

This trick is done by Starbucks. They use it in determining the size of the coffee cups sold to customers.

Also use this trick for your products and be aware of this trick before buying anything

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