Description
Better price tag design can significantly manipulate demand to increase the company’s profit. The price should be displayed in small size, on the bottom left of the label for best results as that makes the price seem as small as possible to the consumer.
The font chosen should minimize the length of the price line. The experiment of Coulter & Coulter in 2005 emphasized that “size does matter”. The human brain associates magnitude with quantity, which causes the same price to be perceived very differently depending on font size. We are also most familiar with number sequences that increase from left to right. Interestingly enough, experience shows that a price placed on the right side of the label is perceived to be higher than if placed on the left. The same logic applies when displaying the price at the bottom rather than at the top of the label.
Many e-commerces and retailers display their prices along with the initial pre-promotional reference price. Research carried out by Urbany et al. demonstrated that consumers are significantly more likely to buy when the initial pre-promotional price is higher to highlight the apparent savings generated from the purchase. The incentive for buying is simple - consumers feel that they are making a worthy purchase.
Learn more in the entry Styling prices for retail of the Lokad knowledgebase.
