May 26 5:25 pm
gtmcknight: beforesleep: I am reading Dan Ariely’s fantastic book Predictably Irrational and was struck by how adding irrelevant choices can influence consumer behavior. Take, for instance, the above chart which offers consumers three subscription choices. Which would you choose? Not surprisingly, out of 100 MIT Sloan students a total of zero people chose “Print Only.” 84 chose the “Print and Electronic” subscription, while 14 chose “Electronic Only.” So why even have the dumb “Print Only” option? Here’s where it gets interesting. If you reduce the choices to just two: $59 for an “Electronic Only” subscription or $125 for a “Print and Electronic” subscription, a staggering 68 picked “Electronic Only” and only 32 went for “Print and Electronic.” At work is the mind’s preference for comparing two like objects and having a deep attraction to getting something for free. (That “Print and Electronic” subscription looks like an absolute steal compared to the “Print Only” subscription).

gtmcknight:

beforesleep:

I am reading Dan Ariely’s fantastic book Predictably Irrational and was struck by how adding irrelevant choices can influence consumer behavior. Take, for instance, the above chart which offers consumers three subscription choices. Which would you choose? Not surprisingly, out of 100 MIT Sloan students a total of zero people chose “Print Only.” 84 chose the “Print and Electronic” subscription, while 14 chose “Electronic Only.” So why even have the dumb “Print Only” option?

Here’s where it gets interesting. If you reduce the choices to just two: $59 for an “Electronic Only” subscription or $125 for a “Print and Electronic” subscription, a staggering 68 picked “Electronic Only” and only 32 went for “Print and Electronic.” At work is the mind’s preference for comparing two like objects and having a deep attraction to getting something for free. (That “Print and Electronic” subscription looks like an absolute steal compared to the “Print Only” subscription).

gtmcknight Via: George Taylor McKnight

12 notes

  1. bildungsroman reblogged this from gtmcknight and added:
    This goes with another article I recently read about “the death of free” - or rather, using freebies only as promotional...
  2. seanjohnson reblogged this from superamit
  3. charliepark reblogged this from superamit
  4. superamit reblogged this from gtmcknight
  5. gtmcknight reblogged this from beforesleep
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