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Price-Value Bias | cognitive lode by ribot

Recent research suggests that by changing the way we frame the price of a product in relation to its features (and vice versa), we can help consumers choose products that they will be more satisfied with in the long run.

One of the JCR studies is a great example of this. Here, students were asked to obtain a photo-editing software to complete an assignment that was due either in a week, or in three months. Students were asked to choose between software that was either feature-rich and complicated (Photoshop) or simpler and quicker to get started with (e.g. iPhoto). And some were told they would be given the product for free, while the rest were told they’d need to stump up the cash. Curiously, for those students for whom the products were free, they overwhelmingly chose the ‘convenient’ option. However when the price was added, they preferred the complex software, even if their submission was only a week away! What madness! Why??

Even more crazy was that for those who had to pay, some were told both products cost $10, while others were told they cost $200. However, despite this massive variation in price, it didn’t affect the results, so the bias kicks in even for a price as low as $10.

Therefore, marketers can use price to influence consumers to choose functional products that are required to be used in the near future. This can make consumer desire consistent over time and increase satisfaction with the purchase.

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Price-Value Bias.

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