Let’s Talk Popcorn: Consciously Reaching the Unconscious

Several years ago, I watched an intriguing episode of the television show "Brain Games," which explored the buying behaviors of movie-goers. The episode delved into the psychology behind why consumers choose a small popcorn versus a large one. This topic is particularly fascinating when considering that three of the most profitable products to sell are bottled water, coffee, and popcorn. The profit margins on these items are remarkable, and the more you sell, the greater your earnings.

Imagine yourself standing in line at a concession stand. The menu displays the prices: a small popcorn for $5.00 and a large for $11.00. Which option seems more appealing to you? If you are like me, the small popcorn is the obvious choice. If I am particularly hungry, I might buy two small popcorns and save a dollar. In this scenario, there will likely be more sales of small popcorns than large ones, as the price difference makes the small option seem more economical.

Now, let's consider a different scenario. This time, there are three popcorn sizes available: small for $5.00, medium for $8.75, and large for $10.00. Which option is most appealing now? The television show revealed that significantly more people opt for the large popcorn when the price positioning makes it appear favorable. By creating a minimal price difference between the medium and large sizes, spending $10.00 versus $5.00 becomes a no-brainer. Interestingly, it costs the movie theater almost nothing to provide a large popcorn instead of a small one, yet the large popcorn feels like a great deal to the consumer.

This phenomenon can be explained through the concept of anchoring in behavioral economics. Anchoring refers to the cognitive bias where individuals rely heavily on the first piece of information they receive (the "anchor") when making decisions. In the case of popcorn pricing, the medium size serves as an anchor, making the large size appear to be a better value due to the small price difference.

Additionally, the concept of decoy pricing plays a role here. Decoy pricing involves introducing a third option that makes one of the other two options more attractive. In this case, the medium popcorn acts as a decoy, making the large popcorn seem like a more reasonable choice.

When selling your product or service, consider how popcorn is priced on a menu. How can you position your product and price with intentionality? Always remember that value is perceived, and perception is reality. By understanding and leveraging these psychological principles, you can influence consumer behavior and enhance your sales strategy effectively.

Sell well,

Robert Peeples

Sales Performance Consultant and Coach

Three Salmon SPC