Of the over sixty blog feeds I read each day through the Newsgator Online service, one of the most interesting is Neuromarketing. As the name suggests, the blog covers interesting developments in the neurosciences, as they apply to marketing.
A recent post on ‘The Pain of Buying’ confirmed what we already know about pricing; that the combination of price PLUS the fairness of the price drives customer purchase behaviour. High or unfair pricing activates areas of the brain associated with pain and quickly turns into a no-sale, whereas, being able to pay later in small increments (read: buy with a credit card) has the opposite effect. Customers, however, often have difficulty knowing exactly what things cost. Marketers have long exploited this lack of knowledge through ‘price bundling’; where it is often impossible to identify what individual components of the bundle cost and which thus reduces the pain of pricing.
Another recent post on ‘Price Tag Psychology’ takes this one step further. It confirms a recent trend in retailing towards putting the price on the shelf rather than on the item itself, particularly for higher-priced items. Anything which takes the pain of the price away from the pleasure of the purchase itself increases its likelihood of being bought. The opposite of course applies where prices are low. There, emphasising the price with giant ‘Bargain’ displays activates areas of the brain associated with balancing gains and losses and increases the likelihood of a sale further.
Although we are still a long way away from being able to apply the neurosciences in everyday marketing, we are at last starting to understand some of the neuroscience behind everyday customer behaviour.
What do you think?
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Independent CRM Consultant
Interim CRM Manager