Wednesday, February 10, 2010

Free continued.

Following on from the Lindt/Hershey experiment, Chris Anderson in his insightful book 'Free', gives an interesting example of the human psyche on free.

A gym in Denmark offers membership for free as long as you show up twice a week. Miss a week and you pay the full price for the month. Feeling great about yourself and the gym is the underlying psychology behind this marketing initiative. Eventually you will miss a week but you’ll put the blame on yourself and not the gym for having to pay the fees – interesting.

As humans we are afraid of loss of any kind so the real allure of free is that there is no possibility of loss. So no downside or risk of having made a bad decision – interesting.

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