How emotions influence decisions regarding the price?


    How emotions influence decisions regarding the price?

  • 1 Round prices are preferred when there's an emotional connection

    Buyers prefer round prices (£500.00) when buying products for which there is an emotional connection (eg. buying a smartphone for their child's birthday). See How to use neuroscience to price products.

  • 2 Non-rounded prices are preferred when there's a rational reason

    When buyers buy products for which there is a rational reason (for example, buying a business phone for their employee), they are more inclined to prices that are not rounded (£498.67).

  • 3 Buyers have an internal reference price which evokes emotions

    Research showed how buyers compare prices to what they gain from products, not to the actual price itself. Buyers have an internal reference price and make decisions according to emotions evoked by comparing the perceived price and the reference price.

  • 4 Buyers rarely remember the price unless it left an emotional impact

    Most companies assume that buyers know the exact price of the products they evaluate but research indicates that they rarely remember the price of a recent purchase. Buyers also have trouble recalling price amounts unless they had an emotional impact.

  • 5 Low importance of actual price in purchase situations

    Research casts doubt on the importance of the actual price in purchase situations. Customers don't make rational purchase decisions, but emotional ones.

  • 6 Buyers remember good deals, not exact prices

    Buyers don't always remember the exact price but they do remember the entire evaluation process: was it a good deal or not.

  • 7 Expensive is better - a method for attaining more self-esteem and value

    When something is expensive, the usual perception is how the buyer is someone more skilled than those who don't have the money to buy it. Acquiring something expensive raises self-esteem, produces positive emotions and is viewed as a sign of higher social status.

  • 8 Although perceived as better, people don't always go for the most expensive

    Although the more expensive is perceived as better; buyers won't always buy the most expensive. Buyers will buy a new, expensive smartphone - although they will be using it mostly for calls and messages but will bargain over a kilo of potatoes.

  • 9 Most marketing messages for expensive goods target buyer's consciousness

    Most marketers of expensive goods create messages that target buyer's consciousness. The problem's that consciousness suffers from analytical paralysis - it can only process 3-4 informations at once. For example, phone numbers have a maximum of 7 digits - the maximum short-term memory can remember.

  • 10 Marketing messages for expensive goods should target buyer's subconscious

    Emotions come from the buyer's subconscious so in order to make a sale, the subconscious has to be targeted with marketing messages. Storytelling can serve as a method for that - it activates parts of the brain that process images, sounds, smells and movements - who in turn produce emotions.