How many effects are there in psychology

5 psychological effects that every event manager should be aware of

As an event manager, negotiations and numbers are part of your everyday life. Service providers send you a lot of offers. You yourself use numbers when selling tickets or sponsoring offers. But how do numbers and psychological effects affect you? Let's take a closer look at some of the tricks.

1. The anchor effect

The anchor effect has the effect that we are influenced by our environment information when dealing with numbers or money without us being aware of this influence. In other words: if we want to measure the value of something, our brain looks for comparative values. If it does not find this, a number drawn entirely out of thin air is sufficient for it as a reference point.

There are numerous tests in which people are supposed to assess the value of a product. If you present them with a high number beforehand, the estimate is significantly higher even if the number is completely out of context. For example, if you mention the population of a well-known big city beforehand. The test subjects were then willing to pay a significantly higher price. They were “anchored” by the high population. That sounds amazing, doesn't it?

Sales professionals use this effect and mention high numbers early on in their negotiations long before they make a real price offer. You can use this effect for yourself too. On the one hand, you can become aware of the effect and pay attention to the numbers mentioned during negotiations. On the other hand, you can “anchor” your counterpart with high numbers. For example, in the small talk phase of your negotiations with a sponsor, you could report on your last concert visit in the fully booked Berlin Olympic Stadium with more than 70,000 fans.

2. The contrast effect

The contrast effect ensures that we perceive information in a distorted manner when it is in contrast to information. Here is a very clear example:

The left inner circle appears to us to be significantly larger than the right inner circle. Both are the same size. Believe me, I drew it myself.

There are numerous examples of the contrast effect in our everyday life. When we come back from a trip to the Caribbean in January, 5 degrees seem very cold to us. Everyone else who has trudged through the snow at -10 degrees in the past few days, however, perceives 5 degrees as quite warm.

The retail sector uses the contrast effect in its seasonal discount offers - formerly known as “summer and winter sales”. A winter coat that is regularly priced at 400 euros seems very cheap to us at 200 euros. Even if it has always cost 200 euros, it now seems cheaper to us.

Real estate is also sold or built with contrast effects. If the light-flooded city center apartment costs 250,000 euros, does the additional car parking space for 30,000 euros no longer matter, does it? Would you have bought it at this price even if you looked at it separately?

What does this mean now for your everyday business life?

So if you receive an offer with an enormous reduction or an extremely cheap additional offer, ask yourself whether you fall for the contrast effect here. How much would the service offered normally cost? For example, is the additional special offer of an event location really one? Or does it only seem so cheap to you because the total offer of this location shows a high amount?

On the other hand, you can use this psychological effect to market your own achievements. "Secure your price advantage and book your ticket for our next event at half price until!" psychological effects

>> Speaking of location: Here are all the points that you should consider when searching for a location!

3. The effect of "sunk costs"

Sunk costs are those that have already arisen and cannot be reversed - not even through a possible sale.

"We have already put so many hours and so much money into this event, now I want it to take place too." Especially people who are emotionally connected to the project (founders, conceptualists, managing directors) fall into the “sunk-cost trap”. They in particular have invested a lot of time, money or passion in a certain project in the past. However, this does not automatically mean that future investments are justified. Just because a project has already devoured a lot of resources doesn't take more time and money to make it a success. I have often seen this expensive mistake in thinking in agencies.

As much as I can understand the mindset of the project initiator, it leads us to throw more money after what has already been lost. The same also applies to customer relationships. "We're staying with this client because we've been working together for so long and have put a lot of time and energy into building this relationship." It would be better to make a decision detached from the past. For more information on this topic, I recommend Hanno Beck's book “Geld denkt nicht” to others.

4. scarcity effect psychological effects

One strategy to make products or services appear more attractive is their artificial scarcity. Limited and rare products or services appear to consumers to be more interesting and desirable than those that are unlimited. The rarer a good, the more urgent the desire to strike as quickly as possible. This also works for particularly cheap items. At the same time, the customer has the feeling that they will emerge as the winner in this deal. Providers use this, of course, and it explains why we read so often “only while stocks last” and “only 2 pieces available”.

Here, too, be aware of this effect when shopping and use it for yourself and your offers.

You can tell your sponsors that there are only a few presentation areas or lecture slots left. This also explains why you should offer some offers exclusively. The popular insert in event bags is no longer worth anything if it contains countless competitor brochures. If you limit the offer to a maximum of three deposits, it looks very different.

You can tell your attendees that only a few “best view” tickets are available. But be careful with these statements. If you use them too often or if you even have to cancel your event, your customers could doubt such information in the future. psychological effects

>> With these offers you can encourage your participants to buy tickets!

5. The principle of sympathy

We find it difficult to refuse people whom we find likeable. Professional salespeople know this and use it consciously. You can generate sympathy, for example, through attractiveness, similarity and compliments. That is why sales managers are dressed so fashionably and are always looking for similarities and similarities during conversations. "Yes, I know the problem." or “Oh, do you like to play golf too?”. Compliments work even better. We all like compliments. That's why we also like the sender of the compliment. Even if we know it's fake. And then we buy something “because the saleswoman was so nice”. If you look closely, you will also notice that specially trained salespeople reflect our body language. This mirror technique (also known as the chameleon effect) ensures that we find our counterpart “also” sympathetic.

If you are an event manager on the buyer's side, try to evaluate the offer regardless of the liking for the sales manager. If you are sitting in front of your next client or sponsor, you can try to influence his opinion positively through a well-groomed appearance, emphasized similarities, compliments and mirrored posture. psychological effec

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Katrin Taepke

Katrin Taepke studied trade fair economics at DHBW Ravensburg and is therefore an internationally recognized event expert. Since 2003 she has been planning, budgeting and organizing trade fairs and conferences with up to 10,000 participants.