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Imagine this…
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You've decided to start holiday shopping early so you don’t have to brave a shopping mall in December.
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Y’know–like last year. *shudders*​
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You kick off your “responsible adult” era by shopping for new winter clothes for your partner.
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After browsing online for an hour, you narrow the first gift down to 2 options from the same brand.
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Option A: A beautiful wool scarf priced at $45. You know scarves at this shop range from $15 to $50, so this one's clearly top-tier.
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Option B: A stylish wool coat priced at $55. You know their coats range from $50 to $500, so this is definitely on the cheaper end.
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While reading through the coat’s product page, you can't shake the feeling that the scarf is the better, more generous gift.

So you scroll to the top of the page, search for that wool scarf, and click “add to cart.”
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​Why does a cheaper item with less material feel like the more generous choice?​
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In today’s edition of Why We Buy 🧠 we’ll explore the Less-is-Better Effect—why we judge an option by context rather than objective value.
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​Let’s get into it.

🧠 The Psychology of the Less-is-Better Effect

Psychologist Christopher Hsee ran a series of experiments that flipped how we think about what’s “valuable.”
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In 1 study, participants were shown 2 ice cream servings.
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The first serving—shown by itself—had 7 ounces of ice cream in a 5-ounce cup, so it was basically overflowing.
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The second serving—also shown by itself—had 8 ounces in a 10-ounce cup, so it looked nearly half-empty.
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The kicker?
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​Participants said they’d pay MORE for the 7-ounce serving ($2.26) than the 8-ounce serving ($1.66).​
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But when they evaluated both cups side-by-side? The Less-is-More Effect disappeared, and participants said they’d pay more for the 8-ounce serving.

Brains are kinda lazy.
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Instead of using energy to analyze true value, they latch onto attributes that are easy to judge when looking at something alone.
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But when you put 2 options side-by-side, your brain compares the objective facts. So things like the bigger portion or truly better deal win.
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Your customers deal with this, too.
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They judge single products and services based on appearance and gut feelings instead of cold, hard facts like quantity or total value.

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🤑 How To Apply This

Alright, so how can you apply this right now to sell more?
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Luxury goods​
​Make smaller items feel premium through presentation
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​A simple sterling silver bracelet typically costs around $50-100. But Tiffany's Square Bracelet in sterling silver? That’ll set you back $1,975.

When you see it presented alone in that iconic Tiffany Blue Box, you focus on the brand's prestige, elegant design, and the status it portrays—not the material cost.
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But if you put 2 bracelets side-by-side in identical plain packaging with a breakdown of materials?
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You'd probably question paying 20-40X more for similar silver weight. 😅
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Subscriptions​
​Transform getting “less” into the smart choice
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​A serving from a HelloFresh meal kit costs ~$10.99. But if you break it down by ingredient, you could likely buy the same amount of food at the grocery store—if not more—for less per serving.
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Still, people choose the kit.

Why? Because those “smaller” meals feel premium thanks to the pre-portioned ingredients and convenience.
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You focus on the ease and completeness of the meal (plus the fact that you don’t have to get stuck in decision paralysis when deciding what to make for dinner)—not the markup.

E-commerce​
​Create smaller products that feel worth the not-so-mini price
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​Walk into Sephora or Ulta and you'll find mini-size products everywhere, from perfumes to concealers.
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This includes the NARS Radiant Creamy Concealer that costs $16 for 0.05 ounces, while the full-size costs $34 for 0.22 ounces. That means you're paying over 2X more per ounce for the mini.

When you see that cute mini tube alone, you focus on the $16 price tag—not the cost per ounce.
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And it’s not just NARS. Beauty brands generate massive margins on minis that customers view as delightful, cost-effective treats.

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💥 The Short of It

The Less-is-Better Effect explains why people may choose a smaller or “less-than” option when it’s presented by itself.
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So instead of piling on more features or quantity, smart marketers present *less* in a way that feels like more.​
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​And customers are happy to pay the not-so-cheap asking price.
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​​Until next time, happy selling!

With ❤️ from Katelyn and Jordyn

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