We’ll pay more when we smell something nice
Though often overlooked, smell has a powerful effect on memory recall, nostalgia and, as long as it’s deemed authentic, our purchasing decisions.
Kechagia & Drichoutis (2017). The effect of olfactory sensory cues on willingness to pay and choice under risk. Journal of Behavioral & Experimental Economics.
The study
105 people were split into two groups, put in a room with either a zesty scent in the air, or no scent. They were then shown a mug, and were asked to bid for it with real money.
Those in the scented room exhibited a higher average willingness to pay for the mug.
Kechagia & Drichoutis (2017). The effect of olfactory sensory cues on willingness to pay and choice under risk. Journal of Behavioral & Experimental Economics.
Key Takeaways
Keep environmental scents simple...
...unless it's the brand differentiator (e.g. Aesop, Neal's Yard). Much like visual stimuli, in-store scents deemed simpler result in both higher average spending and cognitive processing (Hermann et al., 2013).
Be authentic.
You'll risk triggering skepticism if you substitute a real side-effect of production for something fake (Lunardo, 2012), i.e. a freshly-baked scent in a store with no oven. Better to have a complementary or no scent than have consumers think you’re patching over an inferior product.
Consider a product scent.
What sort of feeling do you want to evoke upon unboxing? Adams & Douce (2017) provide a brilliant analysis of possible scents. Make it subtle, appropriate and apply it consistently to the entire range. e.g. Tech company Apple is notorious for the sweet scent experienced when opening up a new computer for the first time. Even though you can't see it, you remember it deeply.
In further detail
We’ll pay more when we smell something nice
Though often overlooked, smell has a powerful effect on memory recall, nostalgia and, as long as it’s deemed authentic, our purchasing decisions.
Kechagia & Drichoutis (2017). The effect of olfactory sensory cues on willingness to pay and choice under risk. Journal of Behavioral & Experimental Economics.
The study
105 people were split into two groups, put in a room with either a zesty scent in the air, or no scent. They were then shown a mug, and were asked to bid for it with real money.
Those in the scented room exhibited a higher average willingness to pay for the mug.
Kechagia & Drichoutis (2017). The effect of olfactory sensory cues on willingness to pay and choice under risk. Journal of Behavioral & Experimental Economics.
Key Takeaways
Keep environmental scents simple...
...unless it's the brand differentiator (e.g. Aesop, Neal's Yard). Much like visual stimuli, in-store scents deemed simpler result in both higher average spending and cognitive processing (Hermann et al., 2013).
Be authentic.
You'll risk triggering skepticism if you substitute a real side-effect of production for something fake (Lunardo, 2012), i.e. a freshly-baked scent in a store with no oven. Better to have a complementary or no scent than have consumers think you’re patching over an inferior product.
Consider a product scent.
What sort of feeling do you want to evoke upon unboxing? Adams & Douce (2017) provide a brilliant analysis of possible scents. Make it subtle, appropriate and apply it consistently to the entire range. e.g. Tech company Apple is notorious for the sweet scent experienced when opening up a new computer for the first time. Even though you can't see it, you remember it deeply.
In further detail
We’ll pay more when we smell something nice
The study
105 people were split into two groups, put in a room with either a zesty scent in the air, or no scent. They were then shown a mug, and were asked to bid for it with real money.
Those in the scented room exhibited a higher average willingness to pay for the mug.
In detail
Scarcity
We value things more when they’re in limited supply
Social Proof
We copy the behaviors of others, especially in unfamiliar situations
Prospect Theory
A loss hurts more than an equal gain feels good
Reciprocity
We’re hardwired to return kindness received
Framing
We make very different decisions based on how a fact is presented
Loss Aversion
We feel more negative when losing something than positive when we gain it
Self-Expression
We constantly seek out ways to communicate our identity to others
Default Effect
We tend to accept the option pre-chosen for us
Anchoring
What we see first affects our judgement of everything thereafter
Autonomy Bias
We have a deep-seated need to control our situations
Fast & Slow Thinking
We make knee-jerk spontaneous decisions that can cause regretful damage
Status Quo Bias
We tend to stick with our previous choices, even if the alternatives might be better
Dynamic Norms
We’re more likely to change if we can see a new behavior developing
Salience
Our choices are determined by the information we're shown