Today, I Learned About DISCOUNTING GUILT

As children, we learn a sense of right and wrong, what to do and what to avoid. As we grow older, we try to live by these moral codes, which serve as guidelines for our actions. Maintaining a healthy weight, saving money, and reading to gain more knowledge are all examples of what is considered "right." However, we don't always follow these codes.

We might want to lose weight, but still binge on junk because work is stressful. We might want to save money, but it's hard to keep our belts tight when we come into a little extra cash. We might want to spend more time reading, but then Netflix releases a new season of Squid Game. Breaking these rules makes us feel guilty, but the pleasure of breaking them is almost irresistible.

The problem is, sometimes there might be resistance to these actions, especially if they involve some kind of financial commitment. You might want to save money and invest it in a retirement account or emergency fund, but then something comes up, and you end up spending it elsewhere. This is where discounting guilt comes in.

Discounting guilt is a marketing technique that leverages human psychology to encourage people to make purchases that they might otherwise feel guilty about. It works by applying a discount to the item that makes us feel the most guilt. This technique is based on the idea that people's behavior is influenced by their emotions, and that guilt is a powerful emotion that can prevent people from making purchases that they want or need.

A classic example of discounting guilt is seen in a study conducted by PepsiCo. The study's goal was to increase sales of soda and chips by placing them in barrel coolers at the checkout in several stores. The expectation was that shoppers would welcome cheap, refreshing snacks after spending so much time and energy pushing a trolley or holding a shopping cart. To reduce the chances of shoppers resisting the temptation, PepsiCo offered a discount if people bought a drink and a bag of chips.

Unfortunately, these two nudges weren't enough. When companies do traditional bundling, the idea is to get a total discount on all bundled products at the same time. If there are three products in the bundle, the discount applies to the sum of all three products. Discounting guilt suggests that instead of applying the discount to all products in the bundle, apply the discount only to the item consumers feel the most guilt about buying. It's still the same total discount, but the feeling of getting more value from the purchase is higher because guilt is reduced.

Discounting guilt can be applied in various situations, such as when buying organic food, signing up for a gym membership, or purchasing environmentally friendly products. By applying the discount to the item that makes us feel the most guilt, we are more likely to make the purchase, even if it goes against our moral codes. It's a way of satisfying our desire to indulge while still adhering to our moral compass.

However, it's important to note that discounting guilt is not a one-size-fits-all solution. For example, some people might feel guilty about buying certain products, while others might not. It's essential to understand the target audience and what makes them feel guilty. Moreover, discounting guilt can be seen as manipulative by some, and it may not work on everyone.

In conclusion, discounting guilt is a powerful marketing strategy that can help increase sales by reducing the guilt associated with a purchase. It's a way of offering value and reducing the negative emotions associated with breaking our moral codes. By applying the discount to the item that makes us feel the most guilt, we are more likely to make the purchase and feel better about it. However, it's important to use this strategy mindfully and ethically, keeping in mind the potential ethical concerns and the individual differences in how people experience and respond to guilt.