Men who saw red discount prices for toasters and microwaves agreed more strongly that they’d save “a lot of money” than men who saw black prices (4.26 versus 2.56 on a seven-point scale), says a team led by Nancy M. Puccinelli of Oxford’s Saïd Business School. But this didn’t happen when the research subjects were induced to think carefully about the prices, suggesting that red’s happiness-inducing effect sways men’s perception of discounts only when they’re not paying close attention. Women were unaffected by the prices’ color, perhaps because they were already paying closer attention than the men to the discounts, the researchers say.
We tend to think that all the prospect thinks about is price. Many times we are afraid of price increase because we think clients and prospects will fly away.
The real truth according to neuromarketing is that cost is not the only variable that causes pain in the mind of the consumer. Fairness or unfairness of the deal plays a big role too. How you present your services or products will dictate the fairness of the price.
A simple way to deal with the pain of spending money can be to ask for credit cards. Some how credit cards seem to take away the pain of spending.
Jason Mars is the co-author of the book NO B.S. Price Strategies with Dan Kennedy.
We loved reading the book and think it is a very important read specially in a market like we have today.
I had the privilege of interviewing Jason Mars and he shared some great insights on how to work price in different business models.
Here is the interview for you, just click on the link: