How people buy products at different income levels
People buy products at different income levels differently:
- When you’re poor/low-income or ignorant about the product, you purchase the highest features to price model.
- As you become more wealthy in terms of knowledge, time, and money towards the product you buy higher quality or “prestigious” products to graduate from the “cheaper” stuff. Also you’re putting in more time, so you feel the company you’re buying from should do the same.
- Finally, when you’ve figured out exactly what you want, you segment based on which company most suits your morals and values.
Your problem is similar to the one faced by those fighting for energy conservation. Most people understand the costs financially and environmentally, yet are reluctant to make dramatic changes.
It might work if you created an inherent competition. A company called oPower (formerly Positive Energy) is testing a hypothesis that people will change given the competitive social power.
Research :
“There are these signs in hotels that ask people to reuse their towels to help save the environment.A second one that we created specifically informed guests that the majority of others did reuse their towels sometime during their stay.”
The result of that message? Twenty-six percent more recycling. And when Goldstein and his colleagues tweaked the sign further to say the majority of guests in that particular room had re-used their dirty towels, recycling improved 33 percent. Goldstein says it’s an adaptive, herd-like response.
“If you go to a cafeteria and you’ve never been there before and nobody is touching the ham and everybody is touching the turkey, it’s probably effective for you to go for the turkey sandwich instead of the ham.”
