25 Cognitive Biases, Bias 16 - Contrast-Misreaction Tendency
Bias 16 – Contrast-Misreaction Tendency
10
Mar
Mar
25 Cognitive Biases – Bias 16 Contrast-Misreaction Tendency
Our problem here is a misunderstanding of comparisons and missing out on the magnitude of decisions, it is better to evaluate people and objects by themselves and not by their contrast.
An example of Contrast Misreaction Tendency
Contrast Misreaction Tendency is routinely used to cause disadvantge for a customer, making an ordinary price seem low, a vendor will very frequently create a highly artificial price that is much higher than the price always sought, then advertise the standard price as a big reduction from his phony price.
Lets say I REALLY charge $1500 a month for my digital marketing service but I start off by showing my client the same service for $2500.
This way when I make him feel special and lower the price “just for him” then he’ll feel like he got SUCH A GOOD DEAL!
Obviously you gotta be a great salesman , but you get the point.
Start off high, then go low…. it’s MUCH easier than starting low and then going higher to get a sale.