Color is a powerful communicator of information. That’s why sales are often emphasized with a red tag. However, recent research shows that indicating savings with the color red might not be as effective as most people think.
In the research paper titled, “Are Men Seduced by Red? The Effect of Red Versus Black Prices on Price Perceptions,” researchers reported that men are quicker to interpret a red price as bigger savings than women.
The research found that women are more likely to be suspicious of a retailer’s use of red to highlight prices. This is in part due to women’s better pricing memory.
“Because [women are] deeper processors,” said Rajneesh Suri, marketing professor a Drexel University and one of the researchers on the study, “they tend to challenge deals…while men avoid thinking about it.”
What does this mean for you and your business? Well, if your target market are primarily men … indicating a price drop with the color red might really work well for you. However, if your target market consists primarily of women … then that might not be such a good strategy.