How the human brain figures out if the product is worth the price

The purchasing decision behind buying of a product mostly depends on its cost. Based on this dilemma an experimental research was conducted which throws light on the purchasing decision made by our brain.
  • The price primacy (viewing the price first) is the thing which makes consumers think that the product is worth its price and affects the bargaining power.
  • Research shows that fMRI machine (functional magnetic resonance imaging) helps participants respond to the pictures of products and prices.
  • It depends upon the brain activity whether the customer had seen the price or product first. When the product came first, the decision question pops up ‘Do I like it?’ and when the price came first, the question strikes ‘Is it worth it?’.
  • The point isn’t whether the price makes a product better, it’s whether a product is worth its price. So, putting the price first generally makes the narrow difference between the benefits the customer gets from the price and the benefits customer gets from the product itself.
  • Sometimes retailers use to reveal the price of the product before advertising the product. But if they want to take advantage of price primacy they need to advertise first depending upon the market conditions.
This research will help retailers and marketers to decide when it’s best chance to lead with price, which products work best with what strategy, and how to display sales messages to consumers.
Source: https://hbs.me/2m35ATT

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