As expected no one chose the third option, but something magical happened! The mere introduction of this third option made option 2 look very attractive—you were getting online version for free now! The first scenario with two options they had nothing to compare either option to. Option 1 has no comparable so it gets left out. This principle has been demonstrated successfully in many different scenarios.
Only, there were only two individuals in the pictures, the third was a digitally altered slightly inferior version of one of the two. An overwhelming majority chose B in this scenario!
Hence B wins in a large majority of cases. Next time you are evaluating vacation packages or buying a home, pay attention to how different options are being positioned. These professionals have figured this stuff out through experience, even if they do not articulate it this way. Research says you are. Members of the Stanford Wine Club were invited to taste 5 bottles of wine and rate them based on their liking.
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Only, there were actually only 3 different wines in those bottles— two wines had two bottles each. Each bottle was marked only with the price tag and nothing else. Some of the same wines were marked at significantly different prices. There was a clear correlation between the rating of the wine and the price tag — more expensive wines got systematically higher ratings.
In another experiment, the same group was asked to rate the same wines again.
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Only this time even the price tags were absent. The cheapest wine was ranked the highest in this case! Now, before we start calling these wine-experts snobs, consider this. Prozac was tested against a placebo. Placebo outperformed Prozac! Their task was to solve as many puzzles as they can.
Half of the group was asked to pay the full price of the drink, an the other half was given a significant discount on the price.
This result has been consistent in multiple such studies over time. So what is going on here? Well, turns out that we inherently expect cheaper stuff to be inferior. This feeling runs so deep, and its effect so profound on our brain, that the cheaper stuff truly ends up having inferior performance. It becomes a self-fulfilling prophecy.
They truly did enjoy the wines with higher price tags more. This was demonstrated by the increased activity in the pre-frontal cortex of the brain, when the same experiment was done under an MRI machine.
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Consumers of Prozac, deep within, expected a poorer performance compared to the more expensive Placebo. This expectation and conviction was so strong that it did create inferior performance in the body. Turns out it can!
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In a study to prove this point, researchers sat down in a supermarket with bottles of Jam on display. The expectation was some users would stop by, fewer would taste, and yet fewer would purchase. Add to Calendar.
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