Humans are complex, emotional creatures known to often make decisions based on impulse, instinct and reflex. This makes understanding how people interpret information and data, make purchasing decisions and take actions extremely important when designing websites. More specifically, understanding the psychology of numbers is very useful for brands and businesses, particularly those running eCommerce sites, tracking apps and software or any business where numerical information is fundamental to the customers’ product experience and their decision-making process.
Anchoring
Anchoring is essentially using number to create a sense of competition and choice. If you offer two products that do the same job but one is priced at $1500 and the other at $650, chances are that consumers will buy the $650 unit in larger amounts assuming they have received a good choice, value for money and even a bargain. Many businesses create two similar product price points with this strategy in mind.
Framing Effect
This is when the same information is presented with slight variations which can drastically impact perceptions and decisions.
Consider a McDonalds Big Mac®:
- 2 100% Aussie beef patties, special sauce, lettuce, onion, cheese, pickles on a sesame seed bun
- 493 calories
- 9 grams of fat
- 2060 kilojoules
- 19% of an adult’s daily recommended salt allowance
All of these figures are correct but the slight variation or framing of the numbers makes the product either more or less desirable.
Charm Pricing
For the last few years customers have been charmed by the 99-cent deal, where an item priced at $39.99 was more desirable than an item priced at $40. But times are changing and customers are now more likely to see 99-cent pricing as cheap scamming rather than a quality product. So how can charm pricing work in today’s market? If you are presented with the price tags below, which would you choose?
$1000 $1,000 $1000.00
Statistically, the $1000 is the most attractive and perceived to cost less. Why? The removal of the comma and the decimal points makes the number the customer is paying seem less.
Take this tactic a step further – 1000. Removing the dollar sign entirely reduces the emotional pain of paying for the product or service and increases the propensity to spend. This is a strategy that is often used by high end businesses such as luxury goods retailers and restaurants but it is now filtering down to other businesses, particularly online stores.
Consider how your business can use the psychology of numbers to understand how your complex customers are likely to view the figures and make their decisions when designing your website. To learn more contact the team at Website Design Centre.
