Psychological tricks small businesses use to make people buy the more expensive products
The Times change. Customers change. Their needs and wants change, business and, business style were changes and as well as marketing strategy changed. Nowadays people live in the world of consumption. Every day humans are surrounded by hundreds of brands and exposed to numerous advertisements from TV, Internet, magazines, posters etc. People around are talking about the exciting new product they bought last weekend and what seems like an innocent game turns out to be an ad for the new release of a well-known brand.
For any company/any businesses that are into the retail business, marketing strategies and tactics are crucial in order to boost sales. However, a growing number of research seen claims that aside from these techniques that companies and businesses practice, people can be influenced into buying by influencing them psychologically. I agreed with that. The decision-making capacity of today’s consumers is engineered. It means that the business peoples are using some tricks to entice customer mind to spend more and purchase more. Even a small businesses use many psychological tricks to make people buy the more expensive products from them.
Psychological Factors Influencing Consumer Behavior.
Definition: The Psychological Factors are the factors that talk about the psychology of an individual that drive his actions to seek satisfaction. Perception: The consumer perception towards a particular product and the brand also influences his buying decision.
Psychological factors can be divided into 4 categories: motivation, perception, learning as well as beliefs and attitudes. Motivation is what will drive consumers to develop a purchasing behavior.
Nick Kolenda (psychology & marketing) from his research (pricing psychology) he mansion influence people’s memory for the price. When people compare the price to a reference price, it can influence them to pull a lower price into that comparison. He also mansion in his article “…price information about a product is unlikely to be coded into memory in terms of exact numerical digits but, rather, is coded spontaneously in more general magnitude terms (e.g., ‘low,’ ‘high’). Thus the numerical price is susceptible to the influence of its original context when people attempt to reconstruct it later. Because of hazy memory, it can influence people to recall a smaller magnitude. ” I totally agree with that. Mostly we can see this from online business. Here are some tricks that he explains.
1. Reduce the left digit by one
When people see those positive results, they often credit the 9’s in the price. However, there’s another culprit responsible: the left digit.
It seems absurd. But rest assured, psychology can explain it. In our brain’s associative network, we store common arithmetic:
He mentioned in his article that, our brains encode numbers so quickly (and beyond consciousness) that we encode the size of a number before we finish reading it. I totally agreed with it. In the other hand such a small grocery shops, they sales some of the items dividing a smaller pieces that customer recommend.
When you’re running a business or marketing team, you’re probably focused on three key metrics: cost, revenue, and profit. Your goal is always to minimize costs while maximizing revenues. You may even work with a finance leader to set aggressive growth goals for your company. There’s a key dimension to pricing, however, that your business may be missing. You guessed it — it’s buyer psychology. Pricing is a concept that transcends profit margins. It’s also a marketing tactic that can help your business boost sales volume. When you think about pricing, you need to focus on more than what will cover your company’s operating expenses and pay the bills. You need to choose numbers that will compel your audiences to buy.by sitting at home smaller businesses gain unexpected profits using psychological tricks. Let’s see some of the small businesses that from our country (Maldives) cloths from Rumbas, cosmetics like note brand. Let’s talk about the local products like rihaakuru. For example, Rihaakuru mostly in local shop they said to their customer this product from Dhigaru. Just people believe if dhigaru rihaakuru it has a perfect taste. Small business using branded name is also one of the greatest trick that they use in their business for boosting their volume, also using the tricks like unique products. I believe that we can sell the products in high rate by change the buyer behavior decision using some tricks even if it is a smaller business does not affect it all.