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The Comparison Effect | How They Getcha!
Almost all of us dine out at restaurants every once in awhile, right? In this economy, it may be less than usual and even when you do, you’re probably looking to keep the bill to a minimum. Well, next time you head out keep the comparison effect (Simonson, 1989) in mind. The comparison effect comes into play when individuals are faced with options regarding a decision that trades one feature for another. The most common trade-offs are quality and price. When this case is presented to people, most choose options which lie towards the middle. Ok, now coming full-circle….how does this apply to your next restaurant trip? Your choice of wine. How many of you often choose the bottle of wine that is 2nd cheapest? I know I’m guilty of it. You don’t want to appear cheap or buy the “worst” wine, but you also don’t want to spend a lot of money. This often ends with selecting the 2nd cheapest bottle of wine. Unfortunately, you’re selecting the wine which the restaurant has marked up the most. So, in essence, you’re paying more for less. They know about the comparison effect and use it to their full advantage. So next time you’re going out and want to save some coin, go with the cheapest bottle. You’ll save the most money and be getting more for it.
I decided to place this post in the regular posting area of my blog, but it is very similar to the type of post you’ll find in the Portfolio section of TDM. Head on over there to find similar psychological type posts. Enjoy!
Simonson, I. (1989). Choice based on reasons: The case of attraction and compromise effects. Journal of Consumer Research, 16, 158-174.
If you have something to say...
interesting. I’ve never been the one to pick out the wine (just realizing that). Do you have more examples?! I don’t want to be ripped off – without my consent of course.
@ MorganRose – unfortunately, there are a million of these things in everyday life. You’d have to read my entire social psych textbook to learn about them all.