Reactive devaluation

Discounting proposals from perceived adversaries due to bias.

What it is

Reactive devaluation is a cognitive bias that occurs when a proposal is devalued if it appears to originate from an antagonist or someone perceived as unfavorable. Essentially, the same proposal can be viewed differently depending on who it comes from, with individuals often dismissing or devaluing ideas simply because they dislike the person presenting them.

How to use it

Reactive Devaluation in Pricing Strategy

In the context of a tech startup, Reactive devaluation can be used in pricing strategies to increase conversions. For instance, a tech startup can initially set a high price for its services, and then offer a significant discount. The initial high price would be devalued reactively by the consumers, making the discounted price seem more attractive. This strategy creates a perception of value and can drive more conversions.

Reactive Devaluation in Free Trials

Reactive devaluation can also be used in offering free trials to increase user engagement and retention. A tech startup can provide a premium version of their product for a free trial period and then offer the basic version at a discounted rate. Users could devalue the basic version reactively, making the premium version seem more valuable and compelling them to continue with the premium subscription.

Reactive Devaluation in Product Features

A tech startup can also apply Reactive devaluation in the presentation of product features. By initially presenting a long list of features and then focusing on the most valuable ones, users may devalue the less important features. This makes the key features seem more valuable and can increase user engagement and retention.

Reactive Devaluation in Bundling Offers

Reactive devaluation can be employed in bundling offers to increase conversions. A tech startup can bundle several of its products or services together at a higher price and then offer a discount on the bundle. The higher initial price would be devalued reactively by customers, making the discounted bundle seem more attractive and affordable. This can result in higher sales and customer retention.

Reactive Devaluation in Customer Retention Programs

Reactive devaluation can be used to boost customer retention programs. A tech startup can initially offer a loyalty program with numerous benefits at a high price, and then offer a discounted price for the program. The initial high price would be reactively devalued by customers, making the discounted loyalty program seem more valuable and desirable. This can lead to increased customer loyalty and retention.

Reactive Devaluation in Marketing Campaigns

Reactive devaluation can also be used in marketing campaigns to increase engagement. A tech startup may initially present a significant problem or issue in their marketing content, and then offer their product or service as a solution. The problem would be reactively devalued by potential customers, making the solution provided by the startup seem more valuable and attractive. This can lead to increased engagement and conversions.

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