Friday, November 5, 2010

zero

Why is “zero” such a hot-button word?

Zero is such a hot topic issue because zero is much more then just a number, because it has psychological implications on individuals.  Regardless of quality of the said good an individuals reaction to a "free" item changes, something that you may not normally buy changes simply because now it does not cost you anything.  This is evident in Chris Anderson's book "Free" the experiment was selling chocolate; swiss chocolate for 15 cents and Hershey kisses for a penny.  Initially the swiss chocolates sold better because they"re better.  However when the price was dropped a cent, making the kisses free sales immediately changed.  Simply because the kisses were free, they sold more even though there were of a lesser quality they took there psychological effect on the individual, which made them choose the free item.  Most people are always seeking to save money therefore the lesser priced item will usually win out, and when something is free most individuals cannot resist because there is no cost for them.

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