There's some awesome research out there in the behavioral economics world about how the concept of "free" just lights shit up in the human brain - from a perception standpoint, "free" is WAY more valuable than just a penny (beyond the average marginal value of a reduction of price by a penny), whereas something that costs $1.01 isn't considered more expensive than something that costs $1.00 beyond the average marginal value of $0.01. In other words, the utility of "free" is substantially higher than of any cost whatsoever, which makes people value it more and feel like they're getting a better deal when they get a $4.95 sandwich with a FREE drink instead of a $4.95 combo that includes a $3.95 sandwich and a $1.00 drink. True shit.
There's some awesome research out there in the behavioral economics world about how the concept of "free" just lights shit up in the human brain - from a perception standpoint, "free" is WAY more valuable than just a penny (beyond the average marginal value of a reduction of price by a penny), whereas something that costs $1.01 isn't considered more expensive than something that costs $1.00 beyond the average marginal value of $0.01. In other words, the utility of "free" is substantially higher than of any cost whatsoever, which makes people value it more and feel like they're getting a better deal when they get a $4.95 sandwich with a FREE drink instead of a $4.95 combo that includes a $3.95 sandwich and a $1.00 drink. True shit.
ReplyDeletePeople are crazy.