Inside Influence Report: A Touching Way to Enhance Value

Inside Influence Report: A Touching Way to Enhance Value

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A Touching Way to Enhance Value


As the Greek legend goes, the god Dionysus offered King Midas a reward of his choosing for acting kindly toward Dionysus’s friend. Midas requested that everything he touch turn to gold, a power that was immediately granted by Dionysus. Of course, we all know this is a fairytale—that objects can’t simply turn into gold just because they’re touched. Or can they? >

According to consumer researchers Joann Peck and Suzanne Shu (2009), physically touching a product might not exactly turn it into gold, but it does increase its perceived value. In several experiments, they show that potential buyers who are asked to touch the products that are placed in front of them are willing to pay more for the products than are those who aren’t. Interestingly, Peck and Shu found this pattern of results not only with buyers, but with sellers as well—when selling items they had been given earlier, sellers demanded higher prices for those items they got to touch. >

The researchers find that in addition to the positive emotional reaction that comes with touching a product, tactile contact leads to a greater sense of ownership of that product. The combination of the positive emotions and the enhanced sense of ownership lead to the increase in perceived value. >

Of course, with the increasing use of the internet to sell products, customers won’t always have the opportunity to touch your offerings before they arrive at their door. However, Peck and Shu found that when a product was unavailable to touch, simply asking consumers to imagine touching it was enough to increase perceived ownership and value of the product. >

This research is important for several reasons. First, since we’re all consumers in one form or another, it’s important for us to understand the factors that affect our judgments and decisions. When retailers ask us to touch or hold items in our hands, its value will automatically increase after doing so. And, if you or your business partners are selling tangible items, you can help potential buyers feel more of a connection to the goods you sell by asking them to imagine touching the items, or when possible, giving them a chance to physically touch those goods. For example, the packing for many of PaperMate’s pens has a section of the package cut out, which allows prospective consumers to touch the pen (Peck & Childers, 2003); this not only enables potential customers to see how the pen feels on their hands, but also enhances the value of the product. >

However, it’s important to note one important exception to this research: According to Peck and Shu’s research, asking consumers to touch products is only beneficial if the products are either neutral or pleasant to touch. Porcupine salesmen beware! >

Sources:>

Peck, J., & Childers, T. L. (2003). “To have and to hold: The influence of haptic information on product judgments.” Journal of Marketing, 67, 35-48. >

Peck, J., & Shu, S. B. (2009). The effect of mere touch on perceived ownership. Journal of Consumer Research, 36, 434-447. >

Access original article: http://www.insideinfluence.com/inside-influence-report/2009/11/a-touching-way-to-enhance-value.html#more

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http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.