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.
When
people see those positive results, they often credit the 9’s in the price.
However, there’s another culprit responsible: the left digit.
Charm pricing is most effective when the left digit changes. A
one-cent difference between $3.80 and $3.79 won’t matter. However, a one-cent
difference between $3.00 and $2.99 will make a huge difference.
He asks why the left digit is so important, because it anchors
the perceived magnitude he said.
2. Expose Customers to Two Multiples of Your Prices.
This tactic is pretty neat. We can see this tricks
small business use very commonly. It helps to boost those sales. The first two ads offered unlimited toppings — an
economically better deal.
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.
Conclusion
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.
