But during this same shopping trip, you might subsequently be offering upgrade opportunities in other product categories. The first task for you is to confirm to yourself that this upgrade will actually be of benefit to the shopper. The next task is to convince the shopper of the benefits. The third task is to gain acceptance for the additional expenditure. Here, shopper agreement to the upgrade is more likely when the price comparison is more difficult. Researchers at Babson College and Baruch College found that people tend to perceive the differences in prices between the regular and upgraded versions to be smaller if the comparison is harder to compute than in a prior upgrade decision.
For these subsequent upgrade price comparisons:
- Quote the actual price points rather than rounding.
- Lengthen the conversation by encouraging the customer to ask you questions about the prices.
- Be more comprehensive in discussing the prices, such as talking about per unit costs or percentage differences.
How to explain why this works? When the shopper has expended mental energy in deciding whether to put out money for an upgrade, two conflicting processes occur:
- Their reservations about spending even more money on another item upgrade increases.
- Their resistance to accepting an upgrade which benefits them is worn down.
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Round Prices to Whole Dollars for Better-Best
Number Costs and Benefits for Desired Effects