Tip of the Week: Enhancing the Value of a Lower Price- If your service or product is substantially the same as your competitor's, but is lower priced, it's natural to assume that your customer will recognize the value of the savings and choose your product.
I just came across a study published in the Journal of Consumer Research entitled: "Opportunity Cost Neglect" that says differently. They found that consumers don't often take into account the "opportunity cost" of the savings, meaning what else they can purchase with the money saved.
An example that the authors used was that of an IKEA print ad that appeared in Singapore earlier this year. The ad featured 2 images: the image on the left showed an unhappy woman standing in front of a fancy cabinet containing a single pair of shoes. The caption underneath read, "Customized cabinet ($1670) + 1 pair of shoes ($30) = $1700. The image on the right showed a woman standing in front of a less fancy IKEA cabinet filled with shoes. The caption underneath showed, that the cabinet's price of ($245) + 48 pairs of shoes ($1440) was still less than the $1700 from the other image.
The study also discovered that it wasn't even necessary to point out specific things the customer might purchase with their savings. Simply reminding them that the cheaper option allows them to spend the savings on something else can be enough.
The point is that the competitive advantage you have by offering a less expensive product or service may not be enough to win the sale. It should be enhanced by pointing out the "opportunity costs" of the savings to your customer.
TheSolutionMovie.com
Check out TheSolutionMovie.com, our 90 second video and please share the movie with anyone you feel might benefit (web-owners, bloggers, authors, job seekers, speakers and others) who would like to achieve greater success.
Watch it again to affirm your own decision to improve your website and online marketing efforts.
In the near future we'll be posting articles on the IOP site which show how you can make (or have made) a movie like this for your site too.
1 New Article for Members
Google Analytics: How to Set Up Google Analytics on Your Site- This article/video shows you how to place Google Analytics code on your website so you can begin monitoring your website's ability to attract visitors and what impacts your online marketing efforts have on increasing your visitors...Login to read more
**********
**********
Have a topic idea?
The primary reason that Karl and I've together this website is to help you make more money. We know the things that you need to know, but we also want to hear about the topics that are of special importance to you.
Email me with your topic ideas at:
Best Wishes,
Rick Henkin and Karl Kasca
IncreaseOnlineProfits.comsm
Attract More Visitors. Create More Customers
Please visit our blogs at:
AttractMoreVisitorsblog.com
CreateMoreCustomersblog.com
Contact us
Know someone who could benefit from this newsletter? If so, please feel free to forward it along. Thank you so much.
Received this as forward? Sign up to receive our future emails for free.
#bottom_spacer# height=1 ALT="">