Using behavioural science to strengthen value perception

The problem

How do you convince vehicle retailers that paying Auto Trader’s premium price represents a good investment for their business, using an annual price rise campaign’s key mechanic; a letter.

Our behavioural solution

Understand the psychology of value perception so you can leverage the key biases that minimise the impact of a price rise.

We conducted a review of the existing academic studies and papers to identify previous successful experiments relating to how behaviour can be influenced and impacted by pricing and perception of value.

Creativity informed by behavioural science

We used the findings from the academic study to tell us how and when to communicate a number of messages in a single piece of communication – in this case a letter, including the price uplift itself.

We then redesigned and wrote the letter to leverage ten key behavioural biases and principles, here’s just some of them:

Results

The annual price uplift communication to vehicle retailers took place in March 2020, unfortunately because of the covid crisis the tracking metrics for success were unavailable. 

Also Auto Trader took the decision to offer its retailers free listings on its site for the duration of the Government imposed closure of all car dealerships.

Categories – RESEARCH, BEHAVIOURAL ECONOMICS, ADVERTISING, RETAIL, BRAND STRATEGY, COMMS, DIGITAL, WELLBEING Behavioural Biases - TRANSPARENCY, SOCIAL PROOF, PICTURE SUPERIORITY EFFECT, RECIPROCITY, COCKTAIL PARTY EFFECT, BANDWAGON EFFECT

Categories – RESEARCH, BEHAVIOURAL ECONOMICS, ADVERTISING, RETAIL, BRAND STRATEGY, COMMS, DIGITAL, WELLBEING Behavioural Biases - TRANSPARENCY, SOCIAL PROOF, PICTURE SUPERIORITY EFFECT, RECIPROCITY, COCKTAIL PARTY EFFECT, BANDWAGON EFFECT