A recent research study from the University of Toronto’s Rotman School of Management suggests that highlighting and reminding consumers of the price prompts them to think about the product’s long-term value, which encourages them to follow their preference for greater usefulness instead of convenience.
In a series of experiments, participants were given a choice among similar products. Compared to control subjects who picked products more convenient in the short term, those provided with price information preferred products with higher functionality, despite the fact that both groups favoured the more useful products in the long run.
Min Zhao, associate professor of marketing at Rotman and co-author of the study, says, “Once you’ve concluded you’ve made a bad choice, you’re not happy with the product, and you may not want to go back to that company again.” She suggested that gym managers could attract new members and increase consumer satisfaction by sending them weekly reminders of the price they’ve paid.
With files from U of T News
