Lately, we have been writing a lot about data science, artificial intelligence, and the wonders of advanced algorithms. For all of the data professionals, this makes perfect sense given the rapid developments in the data world. For others, these ideas may be too far removed from their day job to matter. So, for those who are looking away when someone mentions “data” because you do not think it matters to you, well, look again. Data is everywhere, and so is data deception and this might be the most practical example everyone sees when they are shopping.
Yes, shopping is riddled with data decoys, like stores that advertise “going out for business” (yes I wrote for business) and those “sales” that seem to revolve around national holidays. Why is a mattress all of sudden less expensive on Washington’s birthday? It’s not, but that is part of the marketing magic and so are a few clever ways advertising uses numbers. Let’s look at a few of these examples and explain why these work for some and not for others.
Odd Numbers, Oddly Enough
It would be easy enough for you to know if you are getting a good price on something if the numbers were even rather than odd. Odd numbers are just a little more difficult for us to process. According to some studies it can take 20% longer in our mind to process an odd number vs an even number. When we are hurried, like shopping in a crowded grocery store, we just might defer to whatever the price is, rather than take the time trying to make comparisons.
Numbers like 400 are easy to see as an even number and easy to divide for making comparisons. While the number 798 might take a moment longer. It is also even of course, but as we read the number we see three distinct numbers and are confronted with an odd, odd, then even number. We read numbers left to right and this jumbling of numbers makes it just a little more challenging. This explains, in part why prices often end in odd numbers rather than rounded up.
who does not like to mix math, data, and emotions?
What is the other reason? Emotions of course, and who does not like to mix math, data, and emotions? The emotional part we probably all recognize is when a retailer prices an item at $299 rather than $300. It feels just a little bit better than the bigger number and helps with our own internal bargaining about making the purchase.
BOGOs and Anchors
When you see an item at the grocery store priced 3 for $10, what do you do? What you might do is think “Do I really need three?” If it is a bulky item, you might wonder if there is enough room in the pantry to store three of these things. Or you may say, “Three for $10 sounds like it is a deal!” Did you notice what just happened? Your whole thought process, from your needs to justification to rationalization revolved around the number three. Mentalists – those stage performers who demonstrate numbers games with willing participants – do something similar and it is called anchoring. They begin a seemingly random conversation with a few numbers inserted along the way. Our brains pick up on that and literally before we know it, our unconscious thinking cannot get those numbers out of our heads. All of a sudden, just like that, we are fixed on the number three and we begin processing our decision from there. That number of $10 is long gone from the decision.
The comparison of computers to how our minds work is an apt one. We humans, process information at a profound rate and can mix and combine data from visual clues and data almost seamlessly. It is another reason for example that CAPTCHAs are so effective. Yet, computers are better at sorting odd from even numbers and given the right rules, could be more effective in making decisions with numbers. Where our thought process gets in the way is perhaps due to the complexity of our thinking – how we can be distracted by other inputs and confounded by mixed information. How we often love a favorite number, like seven, or see symbolic reference in lucky numbers, or those with religious significance. How we can combine those thoughts and feelings about numbers into decisions will forever make us unique from computers, and forever make marketers envious of how they can leverage this uniqueness to their advantage.
BONUS:
When Rowman & Littlefield published our book we were delighted to see it available in many places. Wal-Mart is of course is a “pro” at marketing with odd numbers and they listed the book at $34.99 – a penny less than the full retail price – and that may be all it took to get the attention of search engines and avid readers.
Data Duped 