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Free Shipping: Shopper Psychology

Free Shipping: Shopper Psychology

A study done on online shopping behaviour showed that 70 percent of the shoppers abandon their shopping basket, leaving the app/website. The main reason for this behaviour is the unexpected costs, especially the shipping fee, which many buyers see as a sunk cost.**

Free shipping, something expected by many customers during online purchasing, works even if the cost is added to the product, due to a psychological trait of shoppers, who are made to feel as if they have got something extra.

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The Decoy Effect

Often an extra choice is given to the buyer (looking at a set of options) to tilt the purchase in favour of a particular option. The decoy option is only there to shift the mindset, and is also called the asymmetrically dominated option.

The decoy eff...

149

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The Framing Effect Of Costs

Framing is a bias-inducing technique that seems to tilt buyer preferences by providing the same information in different ways. It makes people see the same data in such a way that it affects their choices.

Example: A $10 watch with $5 shipping charges may be a turn-off...

155

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The Subscription Choice Experiment

The famous Economist subscription study showed the following set of options:

  • Option A: Online subscription Only, $59
  • Option B: Print subscription Only, $125
  • Option C: Online and Print, $125
    Subscribers were selecting Option C a whopping 84 percent of the ...

165

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