Ecommerce Tips For Online Marketers. Where Is The Best Place To List The Price?
There are numerous factors that lead to the success of your online storefront and one of them is deciding where is the best place to list the price of the items you sell.
You might think that something as simple as price placement has little to no impact on sales, but interestingly enough it does and the reason why has to do with how our brains are wired.
Brain activity is a key component
The header says it all; brain activity is a key component in most decisions people make. As we process information different areas of our brains are activated as we think, analyze, consider and go through all the steps in a millisecond that render opinions and decisions.
When you start using an analysis of brain activity of a focus group you can learn a lot more of the inner workings and thus, actual thought process of a potential client. This activity is raw data and in most cases is more useful than feedback people might provide.
Is this data foolproof? Of course it isn’t as most focus groups and studies have some degree of fallibility. However the information is still very interesting and can open the door for your own A/B testing to decide if one option works better than another.
Cost Conscious study
A behavior study took place where the question of what is the neural and behavioral impact of price primacy on decision making was asked by Uma Karmarkar, Baba Shiv and Brian Knutson. Their published research from last year showed us some very interesting things.
People were given $40 to spend and were observed as they reacted to the various offers. With the offers there were various ways to present the price to the buyer. All prices were discounts so each would be considered a bargain.
What they discovered is that neural signals looked different when the price came first versus when the product came first. The end result of their research was to determine that when:
- Product comes first – User questions if they like it
- Price comes first – User questions if it is worth it
So what does that mean for retailers?
Price location should be based on product value
The location of your price on a retail site should be directly related to the product value to the consumer. What that means is that higher priced, luxury items need to showcase the product first while bargains need to list the price first.
- Bargains – Think of sites or stores like K-Mart and Wal-Mart that make a living on low cost values. Their entire selling platform is based on low prices and the value you get for your money. Think blue collar, value conscious shoppers who worry less about brand and desirability. In this case you need to focus on the price and that value as those are your selling points to a consumer. It doesn’t matter very much if they like it because; “is it worth it?” is the focus for this group of consumers. Low prices should be shouted out to the consumer so they feel like they can’t pass up this value. “Waffles for only $1? How can I NOT buy them!”
- Luxury – On the flip side, the “do I like it?” matters for items people don’t really need but are more of a desire or a want. Luxury cars, expensive watches, nice golf clubs or any other product that you want to sell the user on the product so that they fall in love with it and turn a want into a need should have the price listed down the road. The first step is to sell the consumer with information to make that product feel desirable. Then, after you have delayed showing the price as long as possible, you list the price in a minimal way. “I HAVE to have that new Callaway Big Bertha Alpha 815 to take my golf game to the next level!”
The bottom line
Just like location matters, content matters, images and colors matter, the placement of your list price matters to how well products are received and considered by consumers. You should try and control how and when the consumer is evaluating the product to ensure you are focused on the proper idea, either value or desirability. So where the best place to list the price will depend on what you are offering, and accidently putting it in the wrong place can sabotage your own selling efforts.