SCIENTIFIC ANALYSIS OF THE MARKETPLACESociologists have been studying
buying habits of American consumers for more than four decades. During this time period, study after study has shown that American consumers tend to follow certain patterns in their shopping behavior.
One such pattern that has been noted many times is what is often referred to as "20-60-20 rule." There is no better way to describe this than to use an example of one test that was done to prove this rule.
THE TESTING STAGE
The sociologists had set up a stage to test buying behavior of consumers in a busy department store. What they did was rather fiendish once you step back to take a look at test.
In department store, they had set up a small stage with three stoves side-by-side. On each machine, they put a tag, which customer was to take to cash register for completion of their purchase. Next, they trained their hidden cameras to focus on stoves and activities of those folks who contemplated purchasing any of machines. Additional hidden cameras were stationed at checkout stand to correlate purchaser to purchase.
At end of one month, sociologists gathered tags that were taken to cash register to make determination as to which stoves were actually purchased.
This is where we expose fiendish scheme of these sociologists and purpose of their test. Each of three stoves was exactly same! The only difference between three machines were price differences on stoves!
One was priced low, one was priced mid-range, and other was priced expensive.
Without fail, 20% of all customers purchased most expensive machine shown. For these people, few took time to examine differences between units. Again without fail, another 20% spent little time studying differences between stoves, and then opted to buy cheapest one shown.
The people who conducted test were astonished to note that most people studied stoves with extreme care as if to learn difference between machines. Even after taking a long time to study three machines, a full 60% of customers bought mid-priced range!
The sociologists drew two conclusions from their test.
1. They decided that majority of 20% of consumers who would buy most expensive item, and majority of 20% of consumers who would buy cheapest item, cared only about price. 2. They decided that remainder were more interested in buying based on their perceived value of product. It was also determined that most of those who bought based on perceived value of product, felt price was a factor in helping determine value of a given product. They decided that customer felt that higher price was indicative of better value.
