Deal Framing & Value Perception Archives

Labour Illusion Details

Labour Illusion means we value a service more when we see the effort behind it, even if that effort doesn’t actually change the result. Visible work feels like higher quality.

Think of a small family business that makes wedding dresses and shows videos of where they source their high-quality fabrics and how every stitch is done by hand. The dress isn’t technically different, but seeing the craft makes it feel more valuable and worth the premium.

In marketing this bias shapes how brands show process, craft, behind-the-scenes steps, or progress bars. When people see the work, they believe the service is better.

Veblen Goods Guide

Price is the feature
For Veblen goods, high price is not a barrier. It is the value signal, but only when the product is visible and socially meaningful. Expensive works when price feels like a status badge, not when it feels like a cost or quality test. Cheap breaks the magic. Expensive creates meaning only in the right context.
Reduce access to increase desire
Limited availability, long waits, invite-only access, or strict selection raise status. Price works best when it clearly reduces access. If the product still feels common or widely available, higher price loses its power.
Avoid discounts and promotions
Sales destroy status. Veblen goods should feel stable, confident, and above price games. Once price starts to move up and down, it stops working as a signal and starts to feel like a negotiation.
Use subtle signals, not loud claims
Status products whisper, they do not shout. Minimal branding, calm visuals, and confident silence feel premium. The message should focus on prestige, rank, and how the product looks socially, not on explaining features, quality, or value for money.
Sell identity, not utility
People buy Veblen goods to signal who they are and how they rank, not how well the product performs. When the story shifts toward materials, durability, or performance, price becomes something people judge, not admire.
Protect the brand story at all costs
Every touchpoint must reinforce status and exclusivity. If the product starts to feel popular, widely chosen, or made for everyone, higher price backfires. Veblen goods must feel selective, not common.
Veblen Good categories:
- classic luxury goods
  high price signals wealth and taste
  example: luxury watches, designer fashion
- scarcity-driven goods
  rarity increases desire
  example: limited editions, small production runs
- status membership goods
  access itself is the product
  example: private clubs, invite-only communities
- experiential goods
  price signals exclusivity of the experience
  example: private retreats, elite events
- symbolic goods
  the object represents status more than function
  example: items worn mainly to be seen
- time-based goods
  long waits signal value
  example: waitlists, made-to-order products
- knowledge-based goods
  only insiders understand the value
  example: niche luxury brands with no visible logos

Veblen Goods Research

Research 1 - Higher prices boost demand only when they signal status or exclusivity

The research from 2018 shows when higher prices increase demand, and when they stop working. The author ran 8 controlled experiments using real luxury products (watches, trench coats, travel bags, champagne). Prices were raised by ~6% (low) and ~11% (high), which matches real luxury pricing (~3-10% per year, confirmed by experts). Results depend entirely on the motivation for why people buy.

Status (Veblen) motivation - strongest effect
Products were framed as public and visible to others. Descriptions pushed people to think about prestige, rank, and how the purchase looks socially. The message was: “This shows who you are.”

When prices increased by ~6-11%, willingness to buy went up, because the higher price itself felt like a status badge.

The same pattern appeared in Marriott data: higher prices in status contexts led to higher RevPAR (revenue per available room). Here, price worked as a social signal, not a cost - the pure Veblen Effect.
Uniqueness (snob) motivation - only with exclusivity
Products were framed as socially selective, not for everyone. The focus was on separation from the masses. The message was: “Few people can have this.”

Higher prices increased demand only when they reinforced exclusivity. If the product still felt common, price had little effect. Price must reduce access to work.
Quality (perfectionist) motivation - no Veblen Effect
Products were framed around objective quality: materials, craftsmanship, durability, performance. The message was: “This is made better.”

A ~6-11% price increase did not raise demand. Buyers judged price logically and asked if quality truly improved. Here, price is a quality test, not a signal.
Pleasure (hedonic) motivation - weak or negative effect
The products were framed around personal enjoyment and emotional reward. The focus was on how good it feels to own or use the product: pleasure, comfort, design enjoyment, sensory experience, or treating yourself. The message was: "This makes me feel good."

In this context, higher prices did not increase desire and often reduced it, because price made the pleasure feel less worth it.
Popularity (bandwagon) motivation - price hurts demand
Here, the products were framed as popular and widely chosen by others. The description suggested that many people buy this product, making it a way to fit in or belong. The implicit message was: “People like me choose this.”

In this context, higher prices often hurt demand, because they reduced accessibility. Expensive products felt less popular, which weakened the motivation to buy.

Overall conclusion:
Price increases of ~6-11% raise demand only when price clearly signals status or exclusivity. Above this range, the effect often disappears and demand returns to normal (higher price >> lower demand). Price works only as a social signal, not as a cost, quality test, or pleasure tax.

Goal Gradient Effect Guide

Expectations shape results
When people expect a positive outcome, they notice improvements more easily. Belief prepares attention and perception in advance.
Signals matter as much as substance
Visuals, words, price, and presentation shape expectations before use. Strong signals create stronger perceived results.
Authority amplifies belief
Expert cues, formal language, and professionalism increase trust. When something looks expert-made, people stop questioning it. Less doubt means more belief. More belief means a stronger experience. The brain trusts authority as a shortcut.
Signal strength through clear rules
The brain treats specific rules as a sign that something works.

"A pill" feels like medicine.
"A pill taken exactly 30 minutes before a meal, with warm water", feels far more effective.

Clear rules tell the brain: this matters, watch closely. When people follow strict steps, the process becomes a mental anchor. The experience feels precise, intentional, and powerful.
Effort makes results feel earned
When something requires effort, people expect a payoff. The brain resists the idea that time or money was wasted. Effort increases commitment. Commitment increases belief.
Signals amplify real quality. They cannot replace it
Placebo effects work best when the product actually delivers. Signals turn real value up. They do not create value out of nothing.
Align every signal with the expected effect
Design the product and everything around it so all signals point to the same expected result.

If it is a luxury product, every signal should say luxury:
price, design, language, scarcity, social proof, and experience.

If it is a painkiller, every signal should say relief and strength:
price, packaging, size, color, instructions, tone, and clarity.

Mixed signals create doubt. Aligned signals create belief. Belief amplifies how the product is experienced. The product works best when nothing around it says otherwise.
Placebo Effect categories
- price signal
  Higher cost increases perceived effectiveness.
  example: an expensive product feeling more powerful than a cheap one.
- design signal
  Clean, serious design increases trust.
  example: medical-style packaging.
- authority signal
  Expert cues reduce doubt.
  example: certifications or professional language.
- rule-based signal
  Clear instructions increase perceived power.
  example: exact timing, order, and method of use.
- effort signal
  More effort increases belief.
  example: multi-step routines feeling stronger.
- brand signal
  Familiar brands raise expectations.
  example: trusted names feeling more effective.
- sensory signal
  Strong sensory input shapes perception.
  example: intense taste or smell feeling more potent.
- social signal
  Seeing others benefit strengthens belief.
  example: testimonials increasing confidence.
- context signal
  Environment affects experience.
  example: calm, clinical settings.
- scarcity signal
  Limited availability increases perceived value.
  example: limited batches feeling stronger.

Bandwagon Effect Guide

Show that lots of people already chose it
Popularity lowers fear. When people see many others doing the same thing, the choice feels safe and obvious.
Use social numbers as momentum signals
Big numbers create trust. Small numbers work too if the group feels exclusive. Momentum feels like energy, people want to join fast-moving things.
Make popularity visible at the right moment
Place social proof where hesitation happens: pricing, checkout, signup, or high-friction steps.
Highlight movement, not just size
The bandwagon is strongest when people see growth, not just status.
Example:
“Growing by 500 members every day.”
Use real people, not faceless numbers
Faces and names make popularity feel real. People follow people.
Dominate a very small area first
The easiest way to look big is to become unavoidable inside one small zone - a neighborhood, a city, a community. If everyone in that area sees you everywhere, they assume you’re huge. This creates a local bandwagon that spreads outward.
Use influencers to “cross the chasm”
When you want to move from early adopters to the mainstream, influencers act as bridges. They create hype, make your product feel talked about, and reduce risk for the majority group.
Bandwagon Effect categories
- Popularity signals
  Big visible numbers.
  example: “50k users joined this month.”
- Growth signals
  Showing rise, trend, acceleration.
  example: “Trending now,” “Selling out quickly.”
- Majority choice signals
  Showing what most people prefer.
  example: “Most customers choose Pro.”
- Social Proof signals
  Real faces, real people.
  example: customer photos, community screenshots.
- Micro-community signals
  Small but tight groups.
  example: “Join 120 top designers inside.”
- Real-time signals
  Live popularity cues.
  example: “14 people are viewing this right now.”
- Behavioral cues
  Showing recent actions.
  example: “Anna from Berlin just bought this.”
- Local dominance signals
  Looking huge inside one small area.
  example: city-wide ads + influencer mentions + local presence.
- Influencer amplification Ssgnals
  Borrowed popularity from trusted figures.
  example: creators showcasing your app during launch.

Category Archives: Deal Framing & Value Perception

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Research 1 - Showing visible effort raises preference by 50%

2. Trollsky Knives

3. Guinness pouring ritual

Research 1 - Higher prices boost demand only when they signal status or exclusivity

2. Supreme

Research 1 - Lower prices reduced expectations and cut energy drink effects by ~50%

2. Targeted Painkillers

3. Guinness pouring ritual

Research 1 - Prices ending in .99 converted 52% better than round prices

Research 2 - 9-ending prices can win even against lower prices

2. Starbucks

Research 1 - Benefit-focused offers beat feature lists up to +128%

2. Slack

Research 1 - linking a luxury item to popular people made buyers pay more and choose bigger logos

Research 2 - Saying others reuse towels made guests follow the norm

2. Game of Thrones

3. TBH app

Research 1 - Building the item made people value it 63% more

2. Notion

Research 1 - 2 options need to be different for contrast principle to work

Research 2 - Side-by-side comparisons make products feel better

2. Dollar Shave Club

Research 1 - Decoy boosts profits

Research 2 - A decoy makes people choose the pricier option twice as often

Research 3 - A useless option can make people choose the expensive plan

2. Panera Bread

Research 1 - People prefer the middle rows 70% of the time

Research 2 - People prefer the middle options almost every time

2. Sephora