Using Figures on Your Course Pages is a Form of Anchoring That Can Be Used to Generate Higher Value Sales on a Website
I’ve talked about Anchoring [Tversky and Kahneman (1974)] in previous posts.
An example of anchoring is where in a negotiation you mention a high figure and then offer your product or service and a lower figure. For example “Bloggs and Son sell the Type C at £1500. But I can offer you as superior version at only £1350”. Your product is then compared to the £1500 version and looks better value.
Or if you are more subtle (and I hope you are) you might say in the lead up to the negotiation that historically the Type C was £1500 but fortunately due to demand and the economies of scale you now have, that the Type C is now only £1350.
This version means you don’t rubbish someone else .. which looks a bit salesy! And you’ve indicated the popularity of the product which verifies their buying decision.
These are examples of How to Generate Higher Value Sales in a negotiation.
What most people don’t realise is that you can do something similar online. It works on a little known psychological principle, that uses anchoring, but where the brain relates your figure with other figures on the page. In other words you don’t have to mention the other figures in a discussion. Even if people see these figures subliminally this works.
An Example of How to Generate Higher Value Sales
If you double click on the image above you’ll see Amazon have made use of this fact. The price of the Steve Hackett CD is £12.99. Dotted around this figure are other figures ….. 20, 23, 19, 30 and 41. You can see I’ve marked them with a highlighter on the image.
I’m not sure if Amazon did this consciously or if it is a pure accident; but this will make Steve’s CD look low cost.
If low figures had been dotted around the page the CD might have looked pricey in comparison and sales might have suffered.
The higher figures need have no contextual link to the actual product or its price; the brain seems to link them irregardless of contextual relationship.
More Psychological Pricing Effects
Over the next few posts I’ll demonstrate how similar psychological effects can influence sales both on websites and in print .. yes print. The above effect works exactly the same in print.
This can be a great tool to use when selling full cost courses. For example my College Marketing Audits samples more more than 10,000 issues that can impact college marketing. Yet it only costs £6000. I put this in my written quotes.
Do You Understand What I Did?
You see what I’ve done? I’ve put two figures in print. One higher to act as a price anchor and one as my selling price.
Anyway £6000 is the genuine price of a basic audit. And it is peanuts when you realise that I consider more than 10,000 issues, problems, errors and concerns that could seriously damage your marketing and bottom line.