Harvard Business Review is arguably the most prestigious publication for business leaders and management thinkers. My recent Harvard Business Review article titled “Research: How Sensory Information Influences Price Decisions” was based upon a fascinating sales linguistics experiment. You can take the test below and then compare your answers to the test results by clicking on the link at the end of the article.
The conversations salespeople have with prospective customers are quite complex. They consist of verbal and non-verbal messages that are sent via the visual, auditory, and kinesthetic (sense of feeling) channels. Can different amounts of visual, auditory and kinesthetic information influence the price customers will pay for an item? Recently, a sales linguistics experiment was conducted in order to answer this question. Sales Linguistics is the study of how customers and salespeople use language during the complex decision-making process.
Over one hundred study participants were separated into three equal groups and six items were presented to them. A diverse set of familiar and unusual items were specifically selected for this experiment. The items came from eclectic sources including a professional baseball game, a Staples office supplies store, and the 1933 World’s Fair. All the participants were business professionals and university graduates between the age of twenty-four and fifty-seven. They were asked to estimate the price of each item and rank whether they had a low, medium, or high level of comfort with the answer they gave.
The first group would be presented only visual information consisting of a picture of the item and a brief description (the descriptions were excerpted from web sites that sell the object or provide background information). The second group would be shown the same visual information as the first group, but the description would be read to them with dramatic emphasis and accentuation. The third group would be shown the visual information, read the description in the same manner as for group two, and also be provided the opportunity to hold and inspect the item before making their guess.
Take the Visual Test
You can take the visual test administered to first group below. After you have studied the picture and description write down its selling price and the level of comfort you have that your answer is correct.
This is a Major League Baseball hit by Manny Ramirez of the Cleveland Indians against the California Angels. Manny is one of only 25 people to have hit over 500 career home runs. His 21 career grand slams is the third most all-time behind legendary Lou Gehrig. His 29 career post season home runs are the most by any player in MLB history.
Price $_________ Comfort With Answer: Low Medium High
The famous ship “The City of New York” braved the ice packs and the Antarctic winter to carry pioneering polar explorer Admiral Byrd and his crew to Little America, where he flew to the South Pole. This 1933 World's Fair Chicago Admiral Byrd Penguin Souvenir is marked at the base, “Byrd’s South Pole Ship - A Century of Progress - 1933.” Carved in wood and Standing 5" tall. The only “known” one is located at the Virginia Historical Society.
Price $_________ Comfort With Answer: Low Medium High
This is a “Staples” brand stapler. It bends staples straight across for flat corners and a neat level stack that lies flat. It is plastic construction that staples up to 30 sheets. It has a non-skid base and includes one-half strip of standard staples. It also includes Staples brand 100% satisfaction guarantee.
Price $_________ Comfort With Answer: Low Medium High
This is a copy of Rudyard Kipling’s Second Jungle Book published in 1915. The Second Jungle Book is a sequel to The Jungle Book by Rudyard Kipling. First published in 1895, it features five stories about Mowgli and three unrelated stories, all but one set in India, most of which Kipling wrote while living in Vermont. All of the stories were previously published in magazines in 1894-95, often under different titles. The original Jungle Book is now worth $3.4 million.
Price $_________ Comfort With Answer: Low Medium High
This vintage brass letter opener engraved in
brass is from Florence, Italy. The knife is art handwork with lovely details:
royal emblem, coat of arms of Florence with "Fleur de Lys" design
motifs, and Italian writing. "RICORDO DI FIRENZE" inscription all
over the length means “Souvenir/memory of Florence.”
Price $_________ Comfort With Answer: Low Medium High
This is an 1886
Morgan Silver Dollar. The Morgan dollar was minted from 1878 to 1904. The coin
is named for its designer; United States mint assistant Engraver George T.
Morgan. The obverse depicts a profile portrait representing Liberty while the
reverse depicts an eagle with wings outstretched.
Price $_________ Comfort With Answer: Low Medium High
Calculate Your Average Comfort Score - While the test results provide many different revelations about how people interpret information, two high-level metrics underscore the impact sight, sound, and touch can have when making a decision about price. First, determine your average comfort level score. Score one point for each time you answered with low comfort, two points for medium comfort and three points for high (a total of eighteen points are possible). Add the points together and divide your total by six to calculate your average comfort score.
Calculate Your Total Overall Price Score - Next, add the price of each of the six items together to calculate your total overall price and compare against the test results for visual group on the chart below.
Compare Your Score to the Test Groups - You can compare your scores to the each test group’s by clicking on this link to the Harvard Business Review article.The article also provides other important lessons for sales and marketing professionals that this experiment provides.
CLICK HERE FOR MORE STEVE W. MARTIN HARVARD BUSINESS REVIEW SALES ARTICLES
