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Showing posts from January 29, 2014

Pricing: Stress High Long-term Functionality, No-hassle Convenience in the Short

Just when that new gym membership is looking like a mistake, reminding consumers of the price strengthens the buyer's purchase choices and leads to long-term satisfaction.

New research from the University of Toronto's Rotman School of Management says that even though most people value higher functionality over the long-term, they tend to prefer no-hassle convenience in the short-run. If it's a digital camera they need in a hurry, they may buy the easy-to-use version, only to later regret that it doesn't have the features they'd like.

When it comes to health clubs, consumers may forget or ignore the many long-term benefits that made them sign up in the first place, in favor of the easier choice of staying on the couch and avoiding the short-term inconvenience of working out.

In both cases, researchers say that highlighting and reminding consumers of the product's price helps them stick to their long-term preferences by prompting them to think about value. And th…