Bottom-Dollar Effect

The bottom-dollar effect explains why consumers feel less satisfied with purchases made when their financial resources are low.
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Social and Emotional Influence
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Ensures users feel transactions are fair and transparent

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Requires careful value communication

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Checkout
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Subscription Management
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Customer Satisfaction
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Engagement
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Trust & Confidence
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Brand Connection

The Study

Bottom-Dollar Effect explores how individuals' decisions and perceptions are influenced by underlying psychological mechanisms. Research on this bias has revealed its role in everyday behaviours and decision-making processes. Studies often involve experiments where participants' reactions are observed to determine the bias's impact. This understanding helps designers and marketers craft more effective, user-centric experiences.

The result

The results indicate that bottom-dollar effect significantly influences decision-making by altering perception, recall, or emotional response. These findings provide valuable insights into cognitive behaviour, informing design strategies.

Actionable tips

1.

Highlight value for money to ease spending anxiety.

2.

Use positive reinforcement after purchases.

3.

Avoid upsells when users feel financially strained.

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