Relax Customers of Negotiated Price Items

Develop positive attitudes in your shoppers. Research finds that happy shoppers are more likely to buy your products and services. One big reason for this is that shoppers who are feeling positive—for whatever reasons—generalize the positive tone to the items they’re considering, so they see what you’re selling as valuable. They’re also willing to pay more for your products and services because part of the value is now the positive tone associated with your store.
     Researchers at Arizona State University and University of Minnesota call this the “rose-colored glasses effect,” and point out that research has usually assumed it applies equally to all sorts of products and services offered by the retailer. However, their findings say that the lenses in those glasses come in at least two different hues:

• When shoppers have been made to feel proud and ambitious, they’ve a greater interest in products they can show off to others, but their interest in functional products—such as appliances unlikely to be seen by friends or family—doesn’t increase nearly as much.
• When the shoppers’ positive feelings consist of contentment and satisfaction with the ways things are now, their interest in functional products grows much more than does their interest in items with social esteem.

     Now let’s shift our profitability attention from positive attitudes to a positive feeling, namely relaxation. It turns out that we can take satisfaction as well as allow some researchers at Columbia University, National University of Singapore, and University of Hong Kong to take pride in their finding that shoppers who are relaxed will be willing to pay more for items where the price is negotiated.
     The 670 study participants were exposed to bidding scenarios on a variety of products and services. Some were relaxed beforehand using either music or videos. The other study participants were not relaxed before the bidding.
     The relaxed consumers’ bids for a digital camera were consistently higher than the bids of those not relaxed. Actually, the relaxed consumers’ bids averaged about 15% above the fair market value of the camera.
     There were similar results for merchandise ranging from indulgent items—ice cream sundaes—to exciting offerings—bungee jumping. The relaxed participants bid higher.
     The researchers say this is because relaxation induces the shopper to think about the possibilities of the item (capture memories with the camera) more than about the item’s specific features (the camera’s megapixel count).

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Emphasize Pride or Contentment in Customers