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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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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...
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...
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 ...
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This is a balancing act. A low price isn’t always ideal, as the product might see a healthy stream of sales without turning any profit. Similarly, when a product has a high price, a retailer may see fewer sales and “price out” more budget-conscious customers, losing market positi...
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It happens when consumers change their preference between two options when presented with a third option, or decoy.
The decoy is priced to make one of the other options much more attractive. The decoy is not intended to sell, just to nudge consumers away from the competitor and towar...
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1. Take surveys online
2. Become a freelancer
3. Invest with a robo-advisor
4. Invest in real estate
5. Invest with a broker
6. Become a virtual assistant
7. Sell or rent your belongings
8. Get a cash back credit card
9. Install Money-Making apps
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