29 Psychological tricks and tactics used to make people buy more

29 PSYCHOLOGICAL TRICKS AND TACTICS G9 USED TO MAKE PEOPLE BUY MORE REDUCE THE LEFT DIGIT BY 1 CHOOSE NUMBERS WITH FEWER SYLLABLES REMOVE THE COMMA $27.82 $1,699 $1699 $28.16 twenty-eight $2.99 twenty-seven eighty-two $3 sixteen 7 syllables 5 syllables Our brain encodes numbers so quickly that a smaller first digit is enough to make the price seem much smaller: $2.99 feels like a lot less than $3. Even though people don't usually say prices out loud, studies show that people perceive phonetically shorter prices as being cheaper. Research shows that removing commas makes a price seem lower ($1,699 vs. $1699). THE GRUEN TRANSFER TOUCH AND MIMICRY USE WORDS RELATED TO A SMALL AMOUNT High Performance low Maintenance Shop layouts are often designed to be confusing and maze-like, forcing people to wander and see more merchandise than they initially planned. This trick is named after mall architect Victor Gruen, who actually hated such manipulative techniques. Research shows that a woman's touch (like a brief touch on the shoulder) makes customers of either gender feel more secure in spending money. Additionally, if a salesperson of either gender imitates your gestures, you may be more likely to buy. Descriptions like "low maintenance" are more appealing to consumers than "high performance," even though both qualities are valued. SMALL DAILY EQUIVALENCE SHOW PRICE IN INSTALLMENTS RATHER THAN A LUMP SUM ODD-EVEN PRICING $5 $4.97 x Day Consumers tend to get anchored on a smaller price subconsciously, even if they know the total price. Breaking the price down into how much it costs daily (or comparing it to a cup of coffee) makes the price seem more affordable. Consumers are more likely to choose something at a price ending in an odd number that is right under an even whole number, like $4.97. VISUAL CONTRAST BETWEEN SALE PRICES FALSE SENSE OF URGENCY REMOVE THE PAIN OF PAYING ORIGINAL SALE Very limited stock! 2222 $50 $35 Limited-time offer: Prices will never be this low again! Only three seats are left on this flight! FIX ORIGINAL SALE $50 $35 500 people have this in their cart! Visual distinction between the sale Uber revolutionized the taxi price and original price is powerful. If the original (higher price) is bold, big, and a different color, that will make the sale price seem more appealing. Regardless of these statements being true or not, they create a sense of urgency that overrides careful purchase planning. industry by having customers pay transparently before service is received. This is way less painful than watching a meter rise as you ride and THEN paying. PHASE OUT DISCOUNTS MAXIMIZE THE PERCEIVED SIZE OF THE DISCOUNT DITCH THE DOLLAR SIGN DAY2 30% 30% 0% DAY1 DAY3 20% of DAY1 DAY2 DAY3 30% 20% 10% Retailers use the biggest number possible to label discounts. For example, 20% off a $50 vacuum seems better than $10 off, even though they're both the same Research shows that menu items that include prices without dollar signs ("garlic knots 5") get diners to spend more than menus with dollar signs (“garlic knots $5"). When people miss a great sale, they may be disappointed. However, if it is still on sale but less discounted, people may jump on it in fear that they will miss their chance again. amount. FOCUS ON TIME RATHER THAN MONEY THE NOSTALGIA FACTOR RED PRICES FOR MEN OUR PRICE P08. People are emotional and want to enjoy life, so "you'll love using our product" works better than "our product is inexpensive." Recent research shows that Studies show that men are more nostalgia makes people value money less and feel willing to pay more. It especially seems to emotionally appeal to stressed and overwhelmed millennials, who may crave simpler times. likely to buy products when the prices are displayed in red. Men seem to process ads more quickly and use color as a visual heuristic, and "red" equals "discount." MAKE PRODUCTS SEEM EXPENSIVE THE INSTANT MARKDOWN TO MANUFACTURE DECOY PRICING $8.50 $8 $4 70% OFF ORGANIC MARKET PRICE Consumers want to pay what they believe is fair, so statements like "our coffee is 100% organic" are more effective than "our coffee is delicious." Mentioning top-of-the- line raw materials makes people feel better about spending more money. Retailers instantly mark down a price as low as it can go while still making a profit. The sign might say, "Retail price $139.99: Our price $49.99." This tactic is illegal some countries: In Denmark, you can't advertise a "before" price if it hasn't been sold for that much in the past two weeks. Imagine that a small popcorn is $4, a medium is $8, and a large is $8.50. Many people will go for the large since it is "only 50 cents more" than the medium. The medium only exists to boost sales of the large. CALM, SLOW MUSIC STAPLES IN THE BACK A BRIGHT, COLORFUL ENTRANCE Quiet, calm, and slow music encourages shoppers to spend more time in the store. Supermarkets put necessities such as milk and eggs in the back of the store so you must pass everything else to reach them. Stores often fill their entrances with colorful merchandise (such as fresh produce) to brighten moods and encourage more spending. Alternatively, faster music speeds up the heart rate, moving people out of restaurants faster. OFFER EXCLUSIVITY INCLUDE AN EXPENSIVE MENU ITEM MOST PEOPLE WON'T BUY BUY ONE, GET ONE FREE BOGO VIP $50 $30 $30 Near the top of Maslow's Hierarchy of Needs is esteem. Slogans like "The Few. The Proud." by the U.S. Marines and "Membership has its privileges." by American Express play into this need. By having a $50 dish on the menu, diners are more likely to shell out $30 for other menu items because the cost seems reasonable in BOGO compels people to buy something at full price and often spend more than intended. Prices are set high enough to cover the “free" item. These have all but replaced 50%-off sales, even though half-off deals benefit consumers more. comparison. This is called "arbitrary coherence." EXPOSE CONSUMERS TO HIGHER PRICES, EVEN IF THEY ARE UNRELATED SOCIAL PROOF In a 2004 experiment, music CDs were sold on a АЯВА boardwalk. Every 30 minutes, the adjacent vendor changed the price of a sweatshirt on display to either $10 or $80. People AC+DC BACK IN BLACK $80 • $10 spent more on CDs when the sweatshirt was $80! People are more willing to do something if other people are doing it. Using reviews and testimonials as part of advertising earns trust. However, reviews are not always what they seem. Sources: www.fastcompany.com | www.thinkgrowth.org|www.nickkolenda.com | www.forbes.com | www.journals.sagepub.com www.money.com Created by: https://www.titlemax.com/discovery-center/lifestyle/ 29-psychological-pricing-tricks-and-tactics-used-to- make-people-buy-more/