AS THE PRICE GOES UP, SO DO THE EXPECTATIONS. (AND THE LIKELIHOOD OF FULFILLING THEM.)
It’s not news that as consumers pay more for products and services that they expect more. But some recent studies also show that these consumers are predisposed to having these higher expectations met.
In one recent study published this week in the Journal of the American Medical Association, researchers found that subjects given identical placebo “pain relievers” experienced greater pain relief when they were told the mediation cost $2.50 per pill than they did when they were told the cost was 10 cents per pill. Subconsciously, they figured if it costs more, it must work better.
This phenomenon is pretty much universal throughout all marketing categories. The $30 steak tastes better than the $11.95 steak. The $50,000 sedan has a smoother ride than the $20,000 one. The five-star hotel experience is more enjoyable than the four-star, regardless of any evidence to the contrary.
It seems the premium price paid for something doesn’t lead to enhanced expectations as it leads to anticipation. Anticipation of a “premium” experience.
This is good news for marketers who have staked out the “premium” position in their categories, the fact that your customers are “primed” to have a fulfilling experience. One thing to keep in mind, however, is that disappointments in such relationships are rarely tolerated. It’s one thing to be inconvenienced by a cut-rate airline, quite another when you fly first class.
It all comes back to your value proposition. If you are asking a premium price for your products or services, be sure you are offering an experience that will match it in the eyes of your customers.
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- HOW ARE YOU TRAINING YOUR CUSTOMERS?
- What’s Your “Pain Point?”
- The pleasure of anticipation.
- WOULD YOU NICKEL-AND-DIME A FRIEND?
- How to Fire a Customer.
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