Tag: shopping
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Optimum Starting Prices for Negotiations and Auctions (and Why)
A high initial offer in negotiations is more likely to lead to a high final price, yet in auctions a low start price is more likely to lead to a high final price. These are the findings of a recent study that attempted to find the optimal starting prices for negotiations and auctions. In negotiations…
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Scarcity Marketing
Neuromarketing has recently been looking at The Scarcity Effect: WORCHEL, LEE, AND ADEWOLE (1975) asked people to rate chocolate chip cookies. They put 10 cookies in one jar and two of the same cookies in another jar. The cookies from the two-cookie jar received higher ratings—even though the cookies were exactly the same! Not only…
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Psychology of Sales
Retailers aren’t in sales; they’re “in the perception business”, says Jonah Lehrer while discussing how we perceive goods of varying prices, especially discounted goods. Consumers typically suffer from a version of the placebo effect. Since we expect cheaper goods to be less effective, they generally are less effective, even if they are identical to more…