How Gestalt Similarity Shapes Consumers’ Decisions:
- Gestalt Law of Similarity states that the category of your product or service influences how much people think it’s worth
- Gestalt Law of Similarity influences customers to think “it’s worth that price“
- Repeating digits in pricing is bad practice as the brain tends to group similar digits, which can create a spatial size for the price and make it feel “bigger.”
- Research has also shown that specific prices feel smaller to consumers when compared to round prices
Gestalt Law of Similarity is the psychology behind the perception of objects as a group based on their visual similarity.
This principle can be applied to various aspects of design including web design.
However, in this article, we’re going to dive down the rabbit hole of selecting a price for your products or services and how the Gestalt Law of Similarity can guide you towards getting more people to make a purchase.
The category of your product or service should influence the price.
When applied to pricing, the principle of Gestalt Law of Similarity suggests that consumers are more likely to purchase a product when its price is similar to the prices of other products in its category.
This is because our brains tend to process information more efficiently when we can categorize things into groups based on similarities.
When the prices of products in a category are similar, consumers can more easily compare and evaluate the products, which can lead to an increased likelihood of a purchase.
For example, consider a hotshot tech company that sells different models of laptops.
If all their laptops are priced similarly, customers can more easily compare the models based on their features and make a decision about which laptop is best for them.
However, if the prices of the laptops vary widely (as they often do), it may be more difficult for customers to compare and evaluate the products, which could result in decreased likelihood of purchase.
Gestalt Law of Similarity influences customers to think “it’s worth that price“.
Similarly, Gestalt similarity can also influence the perception of the value of a product.
If a product’s price is similar to the prices of other products in its category, consumers may perceive the product as having a similar level of value to the other products. T
As you’ve probably guessed this results in potential customers feeling that the price is fair and therefore increases the likelihood of purchase.
On the other hand, if a product’s price is significantly different from the prices of other products in its category, it may be perceived as having a lower value and decrease the likelihood of purchase.
Repeating digits in pricing is bad.
The trend of repeating digits in a price, such as $666, has emerged as a new phenomenon that on the surface may seem daring and attractive to a brand wanting to stand out from the competition.
However, research has also shown that specific prices, like $801,298, feel smaller to consumers when compared to round prices, like $800,000. (See: The Price Precision Effect: Evidence From A Laboratory and Market Data by Thomas, Simon and Kadiyali)
However, this pricing strategy also has its downsides.
For example, an unusual price like $444 can draw too much attention to the cost, which can potentially reduce sales. Round prices like $500 may also come across as arbitrarily chosen and therefore feel expensive.
Within a price, the brain tends to group similar digits, which can create a spatial size for the price and make it feel “bigger.”
For instance, $95 and $99 are an example of this.
Subconsciously, $95 may be perceived as two smaller digits, while $99 may feel larger due to the grouping of the digits into a single magnitude, which is naturally larger in terms of absolute value.
This is similar to an anchoring effect, where the larger number influences the perception of value.
Wrapping up Gestalt Law of Similarity.
In conclusion, the principle of Gestalt Law of Similarity can play an important role in the pricing of products and the decisions made by consumers about what to purchase.
By grouping products based on their prices, companies can create a more intuitive and efficient shopping experience for customers, which can increase the likelihood of purchase.
By understanding the principles of Gestalt similarity and how they apply to pricing, businesses can make informed decisions about how to optimise their sales.