Inaction Inertia Effect
Why Black Friday causes a significant drop in post-sale revenues
Inaction Inertia Effect: Missing an offer means you’re less likely to buy in the future.
When I was a teenager, my father used to return from business trips to America with gifts acquired on his travels. At the time the exchange rate between the UK Pound and US Dollar was very favourable. During the early 2000’s there was often cases where electronics were 50% cheaper in America.
One particular year I really wanted a new camera with a retail price of £200 in the UK. My father knew he could purchase it much more cheaply in the US exclaiming; “£200 is far too expensive for that camera”. As such, he promised to buy it for me on his next trip, six months away.
Crossing each day closer off my calendar, the day eventually came and it was well worth the wait. Not only did I get the camera, my father managed to save 60% compared to purchasing the identical model in the UK.
The significantly discounted price of the camera, thousands of kilometres away, had reframed my fathers perceived value of it. In turn, this led him to postpone purchasing it until he could get it for the cheaper price.
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