Remember the time when you bought your first smartphone and went on to buy a protective screen guard, fancy cases, compatible headphones or even a smartwatch?
This is a consumer behaviour where one purchase leads to a series of other purchases. This is “The Diderot Effect.”
In simple terms, the Diderot Effect happens when buying one product makes you feel like you need other new things to complement it.
A study by the Journal of Marketing found that customers who purchased a new, high-end product were 28% more likely to splurge on related items within the next two months. This shows the significant impact of the Diderot Effect on real-world consumer behaviour.
Product managers can relate it to upselling, but it goes beyond that.
How can Product Managers use the Diderot Effect in Practice?
- Identify Complementing Products
- Bundle Smartly
- Educate Sales Team
- Track Consumer Trends
Closing note: be mindful of not exploiting consumer vulnerabilities. It is essential to balance ethical considerations.
P.S. Have you now observed some smartphone companies bundling protective covers, cases, and other accessories along with the smartphone?
This is in contradiction with the Diderot Effect. Can you explain why?
Image Source: Sketchplanations
#ConsumerBehaviour #Product #ProductManagement #UpSelling