Motivating Consumers with Altruism

Before you throw a wad of money at your next problem, consider this: Most consumers are more motivated by a pure sense of self-fulfillment than greenbacks. Social psychologist Edward Deci first floated this theory in the 1970s. In a series of experiments, Deci asked two groups of subjects to solve a puzzle. One group was compensated for finding a solution; the other had to make do with the satisfaction of cracking the problem. Deci observed that the unpaid groups outperformed the paid ones in speed, originality and overall satisfaction. We see this effect frequently when consumers perceive an altruistic benefit to a product, an advantage that will often bear a higher price. It’s another vivid difference between a commodity and a brand.