Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend / Why You Buy More When You Touch the Product
Transcript
- Lucas: There's a moment in shopping that most of us don't think about — the second you actually touch a product. Pick up a sweater, hold a phone, grip a tool. And that simple physical contact changes how much you're willing to pay for it. Sometimes by a lot. Luna: I've definitely felt that. Like once you hold something, it's harder to put down. But is the effect actually measurable? Lucas: Very measurable. There's a classic experiment — I think the first one was from 2001, but it's been replicated many times. Participants bid on a coffee mug in an auction. Half of them were allowed to handle the mug for a minute before bidding. The other half just saw it through a glass case. The ones who touched it bid roughly 50 percent more on average. Luna: Fifty percent? That's not a small nudge. Lucas: It's huge. And it's not just mugs. A 2024 study — I want to say it was from researchers at the University of Chicago and the London Business School — ran a field experiment at a university bookstore. They had a table with a high-quality sweatshirt. Half the shoppers could pick it up and feel the fabric. The other half could only look at it on a hanger behind a sign that said 'do not touch.' Then they held a silent auction. The touch group's average bid was sixty-seven percent higher. Luna: Sixty-seven percent. So the feel of the fabric literally added two-thirds to the price in their heads. That's the endowment effect in action, right? Once you hold it, it feels like it's already yours. Lucas: Exactly. The endowment effect is the idea that we value things more once we own them — or once we feel like we own them. Touch triggers that feeling of ownership almost instantly. You don't just see the object, you experience it. And your brain starts imagining having it at home, using it, wearing it. Letting it go then feels like a loss. Luna: Loss aversion kicks in. So the question becomes: are retailers exploiting this on purpose? Lucas: Absolutely. It's one of the reasons you see open displays, testers, sample stations — anything that gets you to touch the product. Apple stores are a masterclass in this. Every device is out, charged, connected to the internet, and you're encouraged to pick it up. The moment you do, the probability of buying goes up. Luna: But what about online shopping? You can't touch a screen. So does the effect disappear? Lucas: It does weaken, and that's a problem for e-commerce. But they've found workarounds. One is high-quality video that shows texture, weight, flexibility — basically simulating touch visually. Another is virtual try-on, like for glasses or sneakers. There's even research showing that simply describing the tactile qualities in vivid language — 'buttery soft leather' — can trigger a mental simulation of touch that partially mimics the real thing. Luna: So copywriters are essentially trying to make you feel the product in your head. Lucas: Exactly. And it works, but not as powerfully as the real thing. One study compared in-store touch with a detailed verbal description. The touch group still bid about 30 percent more. So there's no perfect substitute for physical contact. Luna: Okay, but what if you're the shopper and you want to avoid overpaying because you touched something? Is there a mental trick to cancel the endowment effect? Lucas: There is, and it's surprisingly simple. Put the product down and walk away for sixty seconds. That's literally it. In one experiment, participants who held a mug and then set it down for one minute before bidding submitted bids that were almost identical to the no-touch group. The feeling of ownership decays very quickly once physical contact is broken. Luna: That's a great practical takeaway. So the impulse to buy after touching is real, but it's also transient. You just need to interrupt it. Lucas: Right. And interestingly, the endowment effect through touch is strongest for products that are inherently tactile — clothing, bedding, furniture, tools. For something like a book or a packaged food item, the effect is smaller. You don't need to touch a book to imagine reading it. Luna: What about cars? Test drives are the ultimate touch experience. Lucas: Classic example. Car dealers know that if you get someone behind the wheel, the probability of a sale jumps. You're not just touching, you're experiencing. The engine sound, the seat, the acceleration — it's a full sensory endowment effect. That's why they push test drives so hard. Luna: So there's a continuum. A quick touch gives you a small ownership feeling. A test drive gives you a huge one. And online, you're trying to simulate it. Lucas: Exactly. And there's also a fascinating wrinkle about who touches first. In some experiments, if the salesperson hands the product to the customer, the effect is even stronger than if the customer picks it up themselves. The handover feels like a transfer of ownership. Luna: That's almost like a ritual. The seller is literally giving it to you. No wonder luxury stores are so intentional about how they present items. Lucas: Yeah, the presentation matters. Putting something in a box, wrapping it, handing it over — all that reinforces the idea that it's yours now. And once it's yours, giving it back feels like a loss. Luna: So if you're aware of this, you can protect yourself. But it also makes you appreciate how much of retail design is built around psychology. Lucas: Exactly. And that's the whole point of this show — not to manipulate, but to understand. The more you know about your own biases, the more control you have. Luna: Speaking of understanding — if today's episode made something click for you, the way these stay ad-free is listener support. You can buy us a coffee at buy me a coffee dot com slash fexingo. It's a small gesture that keeps the show going. Lucas: Yeah, and we really appreciate it. It's a way for listeners to say 'this is valuable' and help us keep doing it. Completely optional, but it makes a difference. Luna: Alright, back to touch. One last thought: does the endowment effect through touch work for digital products? Like, if you touch an iPad in a store, do you then want to buy apps? Lucas: Indirectly, yes. You buy the iPad because you touched it. But for the apps themselves, touch is less relevant. What's interesting is that for virtual goods — like in-game skins or digital art — the endowment effect still happens, but through a different mechanism. It's more about identity and customization than physical sensation. Luna: So the principle generalizes, but the trigger changes. Touch is the trigger for physical goods. Customization is the trigger for digital goods. Lucas: Exactly. And that's a whole other episode. But the key takeaway for today: if you're shopping and you pick something up, pause. Put it down. Wait a minute. Then decide. You might save yourself a few dollars. Luna: And if you're a retailer, make sure people touch your products. Just don't abuse the knowledge. Lucas: Right. Use your powers for good. That's all for today. Thanks for thinking with us.