Imagine the smell of fresh baked croissant filling your nose and the grumbling sound of coffee beans being grinded up. You are walking through a cafeteria and are on your way to get a cup of coffee. At the coffee counter you see two plates of chocolates being displayed. One offers Hershey’s kisses for 0,01 a piece and the other offers Ferrero Rocher chocolate truffles 0,15 a piece.
=> Which one would you choose?
If you are similar to the participants in the experiment of behavior psychologist Dan Ariely, 75% choose the chocolate truffle. Both chocolates are discounted over 50%, but the Hershey Kiss is a common treat (especially in the USA) and the chocolate truffle is more expensive and usually eaten at special occasions.
The freshly grinded coffee aroma fills your nose again and you stumble straight to the counter. This time the two plates of chocolates have a different offer. One offers Hershey’s kisses for 0,00 a piece and the other offers Ferrero Rocher chocolate truffles 0,14 a piece.
=>Which one would you choose now?
The participants in the experiment new exactly which one they wanted, 66% of the participants chose a Hershey's kiss.
Now going from 25% who choose a Hershey's Kiss to 66% is a massive shift in decision making, and a result any entrepreneur would want. How can such a tiny difference of 0,01 make such an impact? Neuromarketing shows us that as soon as something is free, our automatic brain reacts very strongly to it. Overriding any rational thinking of value. The offer of the luxurious chocolate truffle is still a better deal, but it is not considered in our minds.
Relevance to the business entrepreneur
How is this experiment relevant to the business entrepreneur? Using free in your offer can help you in many ways. For example if you want to get a lot of attention for your new product or service, offering it for free will give it a boost. Free can also be a good strategy to convince a new customer to try your product or service. And when you are selling a packaged service or product a free item can help you sell your total product or service for a higher price.
Do you want to know more about how price can influence your customers and other Neuromarketing insights that can help your business?
=> Sign-up for my live online training of 45 min (free). Learn about the how to get inside the head of your ideal high-end customers.
P.S. I offer my online training for free because I would love for you to try out my new online training and help you with practical tips in your business.