Consumer decision making, the trick of supersizing.
Popcorn at the theater? A medium may cost $6.00. A large, twice the size, only $6.50. What A Deal! .50 cents for Twice As Much? Who wouldn’t buy that?
The Fact that you are now paying $6.50 for .10 cents worth of popcorn is irrelevant you just got twice as much for only .50 Cents. What A Deal!
Why would any one buy the medium, No One Would. The only reason medium is listed is to make the large seem Cheep, and We Love Cheep.
Hears a good trick:
List three items; Small, Medium and Large. Small is 1 cup. Medium is 1.5 cups. Large is 3 cups. No matter the price the large is the “deal” It Is So-much Bigger. decide how much you want for the large, price the medium a few cents less and the small half the price. For only twice the price you get so-much more.
You only need the small but the Large Is So Cheep that you spend more and all they are giving you is a couple pennies worth of popcorn.
You may not even have wanted the popcorn, but if you buy the large you are getting such a grate deal. I mean 3 times the popcorn, who would pass that up?
Take the Wall Street Journal for example. They once offer three options; Printed Paper delivered $x.0o. Online $x.50. OR or both (Print and Online) $x.75.
No one would get the online only, and almost no one will get the print only. Thees just make the $x.75 look like Deal. The online should be less then print. So why pay more… because its a deal. Because its Cheep in comparison.
Side note: New has cashey
Why go with the one you know? What drives your loyalty? The new one is different and supposed to be better. So we risk a little by trying the new one even though it costs more and is basically identical. as long as it comes with presentation of being better and costs only a little more it must be better. Right?
How about the newcomer?
You know Mayc’s, then Nostrum comes along. You are willing to give Nostrum a chance because you have no loyalty to Mayc’s and Nostrum charges only a little more for “better” merchandise. Now Nostrum looks cheep compare to Mayc’s. Its only a little more, but its so much better, isn’t it?