How to Get Customers to Value Your Product More

Hey, Nick here! In this newsletter, I curate insights and timeless principles on how to build great products. You’ll improve your product skills with every issue.

Here’s an article for you today...

How to Get Customers to Value Your Product More

The Motivation Science Center at Columbia University conducted a study where they had students fill out a questionnaire for $5. After filling out the questionnaire, they had the option of choosing a mug with Columbia’s logo or a Bic pen as a parting gift. 

Before the selection, the researcher asked the student to make the decision in one of two ways:

1. Think about what you would gain by choosing the mug, and what you would gain by choosing the pen.

Or:

2. Think about what you would lose by not choosing the mug, and what you would lose by not choosing the pen.

No matter which variation of the question the student got, almost everyone selected the mug. The student was then asked, “What do you think is the price of the mug?” This is when the study really begins.

There are two types of motivation focus: promotion and prevention. Promotion focus is when a person looks at “goals as ideals and opportunities to advance” and prevention is  “opportunities to stay safe and keep things running smoothly.” The questionnaire the students took at the start of the study helped identify them as a promotion or prevention focus type. Most people have a mix of both, but there is usually a dominant trait.

It turns out that “if the way you ask him to make his choice fits with his motivational focus — thinking about gains for a promotion-focused person, or thinking about avoiding losses for a prevention-focused person — he thinks the mug is worth more. About 50% more, to be precise.”

How would their price guesses be different if they needed to use their own money instead of getting it for free? They ran the study the exact same way until the choice of a mug or pen came up. The researchers showed the student an envelope with the fair price of the mug inside. The student could buy the mug if they offered an amount that was equal to or higher than the fair value. If they came in below, then they wouldn’t be able to buy the mug. The table below shows how much of their $5 they were willing to spend.

Even when people had to spend their own money, they were willing to pay more when their purchasing decision was tied to their motivational focus. There are even more studies that support this claim, “when consumers were allowed to evaluate bike helmets in a way that created motivational fit, they were willing to pay about 20% more for one. In another study, consumers offered to pay more than 40% more for the same reading booklight if the way they made their choice created motivational fit.”

The takeaway is you need to understand the reason why your customer is buying your product. Do they have a promotion or prevention mindset coming into the purchasing decision? Are you helping them grow or trying to keep things stable for them? Based on this, you can help them see the value you are providing.

End Note

Thank you for reading. If this was shared with you, you can subscribe here.

For bite-sized product tips in your Twitter feed, follow @ProductPersonHQ.

Have a great day,

Nick