Advertising That Uses a Placebo Effect

The "placebo effect" is a term used in a number of different disciplines to refer to the way a person's behavior, attitude or feelings can change when they are convinced they've received or experienced something attributable to the change. The interesting part is that the change is actually based solely on perception and has little to nothing to do with the thing received or experienced. Small business owners can use the placebo effect in advertising to influence customer buying behaviors.

Managing Expectations


Price and Psychology

The placebo effect in advertising is also directly related to price. Most customers have a mental limit to the amount of money they are willing to pay for a given product or service. You've probably noticed that many businesses sell items at $9.99 instead of $10.00 or at "50 percent off the retail price." Both of these are psychological ways to convince consumers that they are saving money by choosing these particular goods. Paying $9.99 is more palpable than paying $10.00 even though it's only a penny cheaper; and any item that is marked down with a sales promotion instantly seems like a deal.

Celebrity Pull


Keeping it Real
