Exploring Contrast

Dear Colleague,?

Let us delve into the concept of Contrast, as discussed by Josh Kaufman in his book The Personal MBA.

It’s fundamental in understanding how people make decisions.?

Contrast is a cognitive bias where our minds tend to focus on differences between choices rather than evaluating them independently. By placing two or more options side by side, the value of one can appear more or less favourable depending on what it’s compared with.?

Let’s use an everyday example: When you walk into a store or shop looking for a product, you’re often shown a high-priced item first. If this option is beyond your budget, the salesperson will then offer a more moderately priced alternative. Suddenly, the second product seems more affordable and reasonable, even though you may not have considered it otherwise. This is contrast at work - your perception of the second option’s value is influenced by its comparison to the first.?

This principle is incredibly useful in business, particularly in pricing and marketing. Companies often use high-contrast product lines to steer customers toward their desired choice. By showing an expensive product first, the middle-tier product (which may be more profitable for the company) becomes more attractive to the customer. This doesn’t only apply to price; businesses may also apply it to quality, features, or other factors that are important to their audience.?

Understanding how Contrast works enables us to structure our presentations, proposals, or pricing in ways that guide the decision-making process. For instance, in negotiations, offering an ambitious proposal initially allows your next offer to appear more reasonable by contrast. It’s not about manipulation, but about guiding people to make decisions that feel right to them by framing choices in a particular way.?

This insight isn’t just limited to sales; contrast can be applied across various business contexts. When you are presenting data, leading a team discussion, or offering clients a range of service options, placing emphasis on contrasting features can help them see the value of the choice you want them to make. By highlighting key differences and structuring comparisons thoughtfully, you can help others weigh their options more effectively.?

The principle of Contrast is a powerful tool for influencing decisions, not by changing the actual choices, but by changing the way those choices are perceived.?

Have a great week!?

Henry