Once upon a time, our ancestors would gather around a fire to tell stories, sharing their imaginations and lessons with others. Fast-forward to today and we are still sharing stories, but accompanied by smartphones instead of fires.
Would you rather have a 10% chance to get your product for free or a fixed 10% discount? And what does your customer prefer? Mazar, Shampanier & Ariely (2017) decided to investigate the attractiveness of this probabilistic free price promotions. Find out how to use the Las Vegas Gamble discount in your advantage!
As a seller, you try to aim for every product to be sold at the highest final sale price. But what most negotiators do not realize, is that the initial list price is the starting point for the negotiation. In other words: your opening offer is extremely important for the final sale price.
Imagine walking through your local supermarket to buy some fruits and vegetables. We are automatically drawn to that intense red tomato because it looks a lot juicier and tastier than the ones that are pale red.
Sounds familiar? It probably is, because we learned from a young age that fruits and vegetables with richer colors are ripe and have a greater quality. This does not only apply to fruits and vegetables, but also to other food packages. We are, for example, subconsciously scanning for light colored packages when we would like to have something healthy. Our brains associate light colors with healthy options. However, this positive health indication does not always work out as positive as we expect it to be...
Have you ever dared to walk into an Abercrombie & Fitch store? Then the memory of the many muscled six-pack wielding employees probably hasn’t vanished from your mind. The brand seems to be built around the young and fit male employees who guide the customer towards a – likely – pricey fashion investment.
Does this strategy work? Does the sight of bulging biceps, tall v-tapered physiques, and chiseled jawlines truly make the average Joe reach deeper into his wallet? Let’s find out – because science has found an answer.