The Zero-Point Effect: Why "Free" Warps Our Logic and Wins Our Wallets
Imagine you’re shopping online and see two offers: a high-quality pen for $1 plus $2.99 shipping, or a slightly lower-quality pen for $3.99 with “free” shipping. Many of us would instinctively choose the “free” shipping option, even though it’s the same price for a worse product. This isn’t just about saving money; it’s a powerful psychological quirk at play. This phenomenon is known as the zero-price effect. It describes our tendency to react with disproportionate excitement to something that costs nothing, often leading us to make choices that aren’t entirely rational. This post will explore the most surprising takeaways about why the word “free” has such a powerful hold on our decision-making. ...