As a business owner, you can attract more consumers by targeting the human psychology. Here are some of the most effective ideas which are heavily used to leverage customer psychology to increase sales.
Suppose that your current smartphone broke down and now you are looking for a new one. Suddenly, you seem to notice a certain new phone everywhere in the hands of friends, family, and colleagues. Naturally, you would be inclined to consider that phone. This is a classic example of the Frequency Illusion which is also called as the Baader-Meinhof Phenomenon.
Frequency Illusion refers to the repetition of advertising a product or service through billboards, online ads, TV ads, and any possible medium to ensure that it subconsciously tempts the target consumer to buy it.
2. Decoy Pricing
Decoy pricing is a technique in which buyers make up their mind to purchase when they have the opportunity to buy from two products where one of them is clearly low in quality or offers less value for money.
Consider a brand which sells a printer named P1 at $100 with a margin of $20. Now, the company decides to introduce another printer P2 which is similar in features and contains only a few improvements at a price of $180 with a margin of $60. For a prospective buyer, the P1 stands out as an attractive value for money option as it is a lot cheaper than P2 while the difference between their features is not much. As a result, the P1 gets sold out! Here the P2 was a decoy.
In 1990, a study indicated that the fear of loss can make people take an action, especially when it was compared to their readiness to act after acquiring their desired object. An example of this strategy is clearly available in the form of free trials.
Companies offer free trials so a user can become mentally invested in a product and is inclined to purchase it the end of the trial period.
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