Specify the markdown
Posted: Sun Jan 05, 2025 8:51 am
Not only does the buyer perceive this as a better deal, but a higher starting price tends to convey that the product is of greater value. Notice I said “inclines.” Every business has a unique audience with a unique perception of price. Make sure you understand how changing prices affects the perception of the quality of your product in the eyes of your customers.
marketing psychology - example of anchoring using markdowns
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Many SaaS and subscription companies offer a cheaper annual plan compared to a monthly subscription, like the Zoom example below. Another way to display this information might be gambling data turkey to show the monthly rate for the monthly plan, and then the reduced monthly rate for the annual plan. However, if the difference isn't that significant, it might be worth showing the total savings for the year.
The paradox of choice
Let’s say you’re at the supermarket and you want to buy some tea. As you approach the aisle, the rainbow of packages looks great. But as you start to browse, you start to feel not so good. There’s black tea. Green tea. White tea. Red tea. Regular tea, decaf, or herbal. Fruit tea. Zingers. Loose leaf. Probiotic. Sleep-enhancing. Memory-enhancing. And that’s just for one brand. Overwhelmed, you give up on the task entirely. Such is the paradox of choice!
marketing psychology - the paradox of choice
The paradox of choice states that the more options we have to choose from, the more stressed we feel when making a decision and the more likely we are to make no decision at all. We are also more likely to doubt whether the decision we made was the right one. Here are some ways to eliminate analysis paralysis for your audience.
marketing psychology - example of anchoring using markdowns
Show amount saved
Many SaaS and subscription companies offer a cheaper annual plan compared to a monthly subscription, like the Zoom example below. Another way to display this information might be gambling data turkey to show the monthly rate for the monthly plan, and then the reduced monthly rate for the annual plan. However, if the difference isn't that significant, it might be worth showing the total savings for the year.
The paradox of choice
Let’s say you’re at the supermarket and you want to buy some tea. As you approach the aisle, the rainbow of packages looks great. But as you start to browse, you start to feel not so good. There’s black tea. Green tea. White tea. Red tea. Regular tea, decaf, or herbal. Fruit tea. Zingers. Loose leaf. Probiotic. Sleep-enhancing. Memory-enhancing. And that’s just for one brand. Overwhelmed, you give up on the task entirely. Such is the paradox of choice!
marketing psychology - the paradox of choice
The paradox of choice states that the more options we have to choose from, the more stressed we feel when making a decision and the more likely we are to make no decision at all. We are also more likely to doubt whether the decision we made was the right one. Here are some ways to eliminate analysis paralysis for your audience.