The Martini Glass Is Half-Full: Thoughts On Perceived Value

Want to turn a $5 martini into a $11 delicacy? 

Well, this is a metaphor, of course, but when I worked as a bartender, I learned a key tactic that all marketers need to hear. You can sell a standard drink for $5, but if you add a garnish and some blue, unflavored juice, you can charge roughly $6 more.

For $0.20, you just increased your profit by $4.80. All you did was “trick” the mind into believing that this martini is worth more because it is pretty!

Huh?!

This is not a concept I made up. 

Well, the martini glass part is, but it is a concept called “perceived value.” It means that, as human beings, we are hardwired to seek social cues.

It’s like reviews — would you rather buy the $50 product on Amazon that has five 5-star reviews, or the $20 product on Amazon that has one thousand 4-star reviews? Most would choose the latter, and it is because we value social proof — even if the price is lower or higher than our expectations.

The Toyota Example

A great example of how perception can play tricks on us as consumers is rooted in Toyota’s “heavier lock” strategy. In the early 2000s, it was determined that, following the 9/11 terror attacks, consumers sought safer cars. Toyota could have worked tirelessly on improving the impact of their locks, making them heavier, denser, and adjusting several other variables. 

It would have cost millions in R&D and testing, and ultimately, the cost of developing this would have netted very little.

So, what did they do instead?

They installed a small, $0.75 piece of aluminum and inserted it into the car’s locks. This meant that when the lock closed, the aluminum piece made it sound like a loud “clunk!” because sound waves bounced off the aluminum amendment, and thus, it “sounded” safer.

Was it safer? No, but people paid upward of $5,000 extra because it was perceived that this car was safer, all because the locks sounded heavier.

What This Means For Marketers

If you are in marketing, or business, or if you sell a product or service, realize something: gasoline is odorless; they add that distinct smell because it is meant to provide us with a warning in the event of a gas leak.

Leather shoes and leather products, after processing, have no distinct smell. Still, many companies that manufacture them (or the stores where they are sold) will add a scent that we have come to call the “leathery smell,” making it more likely to evoke a sense of quality. 

And in specific areas of many casinos, you may notice a citrus-like smell. This is because neuroscience found that the scent of citrus made people — especially men — more likely to engage in risky behaviors.

The Illusive Nature Of Perception

We often fail to realize that our senses shape our perception of value.

Most, if not all, products are engineered with auditory or sensory facets, i.e., do you think the Coca-Cola itself actually sounds fizzy, or is that manufactured so you hear a distinct hissing sound when you first open it?

Remember, neuroscience is 50 steps ahead of most marketers, and if you want to understand this more, I urge you to look up “perceived value.” 

This concept will turn your $5 martini into a $11 one, with no real need for modification or adjustment. As humans, we are wired to be attracted to sensory items, and it would be worthwhile to share this insight.