Consumer Choice Theory dictates that rational consumers seek to maximize their utility of a potential purchase given their budget constraints. While ad copy tends to focus on the “utility” aspect of this theory, is it possible to shape how the budget constraint is presented? The psychology of pricing is one of the most overlooked aspects of successful ad copy, yet price is one of the first things people look at when making a decision. In this video tutorial, Mike explains how marketers may not be able to change the price, but they can shape how that price is perceived and its role in ad copy and provides five strategies you can use in your next piece of ad copy to make sure the price really is right.
- [Voiceover] Think back to your last purchase.…Was it a coffee?…Was it a movie ticket?…Whatever it was, do you remember the price?…I've run hundreds of experiments that involve pricing,…and I can most assuredly tell you…that changing the way a price is presented in an ad…does indeed matter,…and many times it can be the single biggest factor…between a new customer and a lost sale.…Now I know what you're thinking,…"Mike, I don't set the price of the thing I'm selling.…"I just sell it."…Well, that's not entirely true, is it?…If I offer you a chair for $100 plus free shipping…versus a chair for $90 plus $10 shipping,…they both still equal out to $100, right?…But in the minds of the prospect,…that's two entirely different price constructs.…
Now, maybe you don't have that much leeway…in your organization.…You can't necessarily just change price presentation,…but there are still other tactics you can use…to manipulate the perception…of how price is perceived,…and, while it might sound weird,…price really is all about perception.…
- Describe how to keep content relevant.
- Recognize the importance of carefully choosing grammar and syntax.
- Cite ways to improve the chances of acquiring new customers in your ads.
- Differentiate between website ad copy and social media ad copy.
- Explain the value of customer personas.
- Name the ways in which content marketing differs from traditional advertising.