STRATEGY | 4 minute read
There is no excitement in the mid-price range
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When it comes to shopping, whether it’s for a new piece of clothing, a new phone, or a luxury item, our emotions are intricately tied to the price point. The excitement we feel when making a purchase is not just about the item itself, but also the price we paid for it. In consumer behavior, there is a psychological divide between the feelings we experience when purchasing cheap items, expensive items, and those that fall somewhere in between. This is what we often refer to as the mid-price range.
For many consumers, the mid-price range represents a sort of gray area. These products don’t trigger the same level of satisfaction as bargains or premium products. So why does this happen? Why is there a certain lack of excitement when purchasing mid-range products? The answer lies in psychology, specifically how we associate emotions with different price points and what these associations reveal about our values and perceptions.
The thrill of a bargain
When we buy something inexpensive, we feel a sense of accomplishment and pride. Psychologically, it’s a victory to score a bargain. Our brains release dopamine, the same feel-good chemical triggered by achievements, when we get more value for less money. For many, the satisfaction of a cheap purchase comes from the perception of smart decision-making. We feel like savvy shoppers who’ve navigated the retail world and come out ahead. There’s an inherent thrill in getting something for less than its perceived worth, and that rush is hard to replicate in the mid-price range.
This satisfaction, however, is tied to value and scarcity. We view cheap or discounted items as a “deal,” an opportunity to maximize value. Whether it’s a t-shirt on sale or a discount ABC, buying cheap taps into our instinct to acquire things at the lowest possible cost. We often associate low-cost purchases with “smart” buying. And while the dopamine hit can be strong, it’s short-lived. Once the item is in our hands, the excitement tends to fade quickly.
The desire of luxury items
On the other end of the spectrum, when we buy something expensive, whether it’s a luxury handbag, a designer watch, or a high-end tech product, the emotions are far more complex. The thrill here doesn’t come from a bargain, but from indulgence. Buying an expensive item often satisfies a desire for status, self-reward, and exclusivity.
When we invest in high-end products, the excitement comes not just from the item itself, but from the way the purchase makes us feel. For some, luxury is an experience, a tangible manifestation of success, power, or sophistication. These purchases affirm our sense of achievement and can elevate our self-worth.
Luxury purchases trigger what is known as emotional consumption. The item becomes more than just a physical object. It becomes a representation of our personal aspirations. When we buy luxury items, we’re not just buying a product. We’re buying an experience, a story, and a piece of identity. This is why people will often pay a premium for an item with a recognizable brand or craftsmanship that signifies quality and sophistication.
The messy middle
But then we get to the mid-price range, which is often where the excitement starts to dwindle. These items don’t bring the satisfaction of getting a deal, nor do they offer the emotional high of indulging in something luxurious. Psychologically, mid-priced items don’t provide the same sense of achievement or reward that either extreme does. They don’t represent a bargain, and they don’t represent the self-reward and status of a luxury purchase. Instead, they sit in the uncomfortable middle. Good quality, but not extraordinary. Functional, but not exciting.
Consumers often find themselves asking, “Is it worth it?”. And the answer is often less satisfying. While mid-range products tend to offer decent quality, they lack the emotional and social triggers that expensive or cheap items do. The purchase feels more transactional, just another item to add to the collection, but without the satisfaction of a deal or the emotional satisfaction that comes with splurging.
This lack of emotional engagement with mid-price products often leaves us feeling indifferent. While we might feel rationally satisfied with the value and quality, we’re less likely to feel a deep emotional connection with these items. There’s no rush of excitement, and no sense of status or indulgence. Mid-range products, while practical, don’t spark joy in the same way that cheap bargains or luxury products do.
How to generate excitement in the mid-price range
To generate excitement in the mid-price range, brands need to tap into the psychology behind these purchases.
1. Positioning
Position your brand as an accessible entry point to luxury by highlighting how your products deliver a premium experience at a more attainable price. This could involve packaging and design choices that resemble high-end brands or limited-edition releases that feel exclusive but are within reach.
One brand that has successfully executed this strategy is COS. The brand’s minimalist aesthetic, carefully chosen fabrics, and attention to detail in design resemble high-end fashion houses, making it appealing to both budget-conscious shoppers and luxury customers searching for a bargain.
2. Branding
Building a strong narrative around the brand can elevate its perceived value. By communicating a compelling story, whether it’s about quality, sustainability, or social responsibility, mid-price brands can create emotional connections with consumers. This story could tap into lifestyle aspirations, social causes, or heritage, which helps elevate the perception of the brand from just “good value” to something consumers want to be a part of.
Patagonia is an excellent example of how brand values and storytelling can enhance the perception of a mid-range brand. From its early days, the brand has committed to using eco-friendly materials and supporting environmental causes, crafting a narrative that resonates with customers who share its values.
3. Community
Building a strong brand community around shared interests can help create excitement. By engaging with customers on social media, co-creating products, and encouraging user-generated content, brands can create a sense of belonging. When people feel like they are part of something bigger, their excitement for the brand grows.
Glossier has built a strong community by actively engaging with its audience on platforms like Instagram, fostering conversations, and resharing user-generated content. The brand also involves its community in the product creation process, strengthening the connection between the brand and its customers while also making its audience feel valued and invested in the brand’s success.
Conclusion
The psychology behind our buying decisions reveals that emotions play a significant role in shaping our excitement, especially when it comes to the price point. While bargains give us the thrill of a deal and luxury items provide a sense of self-reward and exclusivity, the mid-price range often falls into a psychological gray area.
By strategically positioning mid-range products as, telling a compelling brand story, and fostering a strong community, brands can transform mid-range products from transactional purchases into desirable, emotionally resonant choices.
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