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Unbiased stories & studies from the frontiers of marketing

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NeuroTactic Overview

Compromise Effect

If you have the capability of having three product options, add a lower-priced option and a higher-priced option adjacent (on both sides) to your primary product. This will help contextualize your customers' options and focus their attention on the best-value option in the middle.

SUMMARY:

We prefer to make compromises than take risks on extreme options. Given three options for a product choice, we will opt for the middle option as a compromise between price and performance. 

If you have the capability of having three product options, add a lower-priced option and a higher-priced option adjacent (on both sides) to your primary product. This will help contextualize your customers’ options and focus their attention on the best-value option in the middle.

Primary Source:

“Simonson (1989). Choice Based on Reasons: The Case of Attraction and Compromise Effects. Journal of Consumer Research, Volume 16, Issue 2, 158–174. Wernerfelt (1995). A Rational Reconstruction of the Compromise Effect: Using Market Data to Infer Utilities. The Journal of Consumer Research, Vol. 21, No. 4., 627-633.”

Dream Category:

Routing

The DREAM framework, created by Vivid Labs, represents a research-backed framework for effective marketing messages. It stands for Desire, Routing, Emotion, Attention, and Memorability.

AIDA Category:

Decision
AIDA is a well-known framework for assembling a marketing message. It stands for the four steps of human decision-making: Attention, Interest, Decision, and Action.

Get The Book:

Snake Oil walks you through using and testing NeuroTactics in your own marketing, along with other critical skills marketers need to have these days.