Hi all, I’m back! I’ve also been reading. Despite the lure of watching Aaron Sorkins ‘newsroom’ on the plane, I also found time to read most of this book:
You can read about it on amazon here:
http://www.amazon.co.uk/Thinking-Fast-Slow-Daniel-Kahneman/dp/0141033576
It’s pretty cool, but the bit that really stuck in my head was the bit about an experiment I’d read about before, but not fully grasped the implications of. It’s to do with ownership. In a nutshell, the tests ask a bunch of people to value something they do not possess, but are shown, such as a mug or a bar of chocolate. Different people are then given the item in question, and possess it for a while, during which they can see it, but are distracted by other tasks. Those people are then asked what their selling price is for the item. Overwhelmingly, people value the item they own much higher than the value people gave to it when asked to buy it.
In short, owning something makes it seem more valuable. Which is understandable, we want to appear rational. I know my car must be a bargain, and worth > X (where X was what I paid), otherwise I’d be a gullible idiot, and I don’t want to feel that…
So…relating that back to 2 topics I obsess over… the popularity of Free To Play Games and the price wars and low prices of non-free games…
Free to play works because it doesn’t ask you to value the game until you already feel you own it. How much would you pay for farmville to buy it outright? maybe $5? But play the game for free for a month, build up your farm, invest it, and then hit a plateau in the game where you really need to buy coins to continue…. and suddenly YOUR game is worth a lot more than $5. You value the game you already own very highly, and so buying add-ons for it is just common sense. I suspect this is why DLC works so well, and sells so well. You have already made a commitment to valuing the game, by investing your time. Only a fool could try to rationalize NOT spending money on it now…
Food for though.