Current Topic: Strategy

Price comparison is key to consumer buying decisions. Does price presentation predict purchase choice? A 2019 American Marketing Association study published by David Hardisty, Dale Griffin, and Thomas Allard confirmed the critical impact of price comparison framing on consumer marketplace decisions.

Research results demonstrate that consumers consistently chose a more expensive product among their options when the price difference was emphasized rather than the actual item price. Four individual studies confirmed this conclusion when measuring the impact of price framing on customer choices.

When in Italy, my father-in-law has a proven technique for finding the best wine in the supermarket: By checking which shelf is the emptiest, he knows which wine is being drunk by the locals and thus is the best to get at that moment. In other words, he gladly uses the scarcity principle when being confronted with many choices in a fairly new and uncertain environment.

We live in a returns culture, where delivery is free and so are the returns. Zero shipping fees and favorable in-store return policies make it very attractive to bulk buy products consumers don’t need. When consumers return their purchases, it causes losses for the companies due to extra logistical and repackaging costs. An increasing amount of returns have a negative impact on the environment too.

Marketers should strive to reduce the returns to save costs and reduce the adverse footprint on the environment. A recently published study has discovered a simple yet highly effective technique companies can use in this regard.

Going to a liquor store or standing in front of a shelf in the supermarket might sometimes be a little overwhelming. All products are screaming for your attention and it might be hard to pick the right product from the different designs and product sizes. 

If you need to buy a running T-shirt, which one would you choose? One with a solid, neutral color or one with a bright, colorful pattern?  Which choice will give you more satisfaction one year later?

Research has found that our buying decisions are often inconsistent with what we prefer in the long run. Most people tend to choose T-shirts with a simple design and a neutral color, believing they would be happier with their choices later.  However, in reality, people experience more long-lasting satisfaction with bolder, attention-catching designs and colors.