We associate savings with discount membership clubs (like Costco) — even when they’re not any cheaper:
Many consumers have had the experience of entering discount membership clubs to make a few purchases, only to leave with enough pasta to outlast a nuclear winter. We suggest that the presence of membership fees can lead consumers to infer a âfees -> savingsâ link, spurring them to increase their spending independent of the actual savings afforded by such clubs. Using both field data and studies in which we created our own âmembership clubs,â we show that 1) fees serve as a signal of price discounts, such that stores that charge fees are perceived as offering better deals for identical items; 2) the presence of fees can increase consumer spending and overall store profitability; and 3) the presence of fees can drive choice of retail outlets, such that stores with membership fees are more popular even when they offer the same goods at the same prices as stores without fees.Â
Source: “The ‘Fees -> Savings’ Link, or Purchasing Fifty Pounds of Pasta” from  Michael I. Norton and Leonard Lee
TheRedArchive is an archive of Red Pill content, including various subreddits and blogs. This post has been archived from the blog bakadesuyo.
Title | Do we like stores that charge us a membership fee better than ones that don’t? |
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Author | Eric Barker |
Date | July 20, 2011 9:35 AM UTC (12 years ago) |
Blog | bakadesuyo |
Archive Link |
https://theredarchive.com/blog/bakadesuyo/do-we-like-stores-that-charge-us-a-membership-fee.24082 https://theredarchive.com/blog/24082 |
Original Link | https://www.bakadesuyo.com/2011/07/do-we-like-stores-that-charge-us-a-membership/ |
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