According to a study from researchers in Germany, customers might be willing to pay more than what companies like Starbucks are charging for a cup of coffee.
According to a study from researchers in Germany, customers might be willing to pay more than what companies like Starbucks are already charging for a cup of coffee.
Neurobiologist and sales professional Kai-Markus Müller, conducted a study in which subjects were shown a pot of coffee next to a price listed in Euros.
At the actual Starbucks price, subjects displayed less brain activity than when they were shown a slightly higher number, which researchers claim is the optimum price consumers would be willing to pay for that product.
According to Müller: “When the brain was expected to process unexpected and disproportionate prices, feelings of shock, doubt and astonishment manifested themselves. The company is missing out on millions in profits, because it is not fully exploiting consumers' willingness to pay money.”
Working with researchers from the Munich University of Applied Sciences, Müller did another study using a vending machine that had three different kinds of coffee.
Two of them had listed prices for 70 and 80 cents each, while the third kind of coffee, a latte macchiato, had no price listed.
People paid an average of 95 cents for the macchiato, which correlated to the price where brain activity analysis shows consent.