Smiling Customers Can Barter for Lower Prices, Study Finds

"Smiling customers can secure up to 10% price discounts compared to angry or disgusted buyers, according to a study. Positive emotions lead to mutually beneficial outcomes in commercial transactions."

Muthana Al-Najjar
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Smiling Customers Can Barter for Lower Prices, Study Finds

Smiling Customers Can Barter for Lower Prices, Study Finds

A new study conducted by researchers from the Ruppin Academic Centre in Israel has revealed that smiling customers can barter for price reductions of up to 10% compared to angry or disgusted buyers. The research found that the "happiness premium" ranged from 5-9% in person and around 3% for online transactions.

In one experiment, shops were asked to repair or replace a broken phone. Phones with a label reading "I am a happy person" led to an average 8% price reduction compared to phones without the label. The findings indicate that displaying a positive demeanor during negotiations can lead to more favorable outcomes for the sellers.

Why this matters: The study challenges the profit-driven view of mainstream economics by highlighting the tangible benefits of positive emotions in commercial transactions. The findings have implications for both consumers and businesses, as they suggest that fostering a positive atmosphere can lead to mutually beneficial outcomes.

The researchers propose that "buying with a smile" should be promoted as a strategy for consumers looking to secure better deals. They emphasize that the happiness premium stands in contrast to the traditional economic perspective, which often assumes that emotions play a minimal role in rational decision-making.

"Our research shows that displaying positive emotions during negotiations can have a measurable impact on the outcome," said lead researcher Dr. Amir Hetsroni. "Customers who approach transactions with a smile and a friendly attitude are more likely to secure price reductions and favorable terms."

The study's findings have implications for both in-person and online transactions, although the effect was more pronounced in face-to-face interactions. The researchers suggest that businesses should prioritize creating a welcoming and positive environment to encourage customer satisfaction and loyalty.

Key Takeaways

  • Smiling customers can get 5-9% price discounts in person, 3% online.
  • Phones labeled "happy person" got 8% lower repair/replacement prices.
  • Positive emotions in negotiations lead to mutually beneficial outcomes.
  • Buying with a smile is a strategy for consumers to secure better deals.
  • Businesses should prioritize creating a positive environment to encourage loyalty.