1. Wanna boost sales and win more customers?
Auction psychology might be a powerful hidden tool you are looking for. In this whitepaper, we
would like to present 5 psychological buttons which the most successful sellers want to understand.
WIN CUSTOMERS
BY AUCTION
PSYCHOLOGY

2. Thursday, July 16, 2015 2
Auctions push a number of our
psychological buttons which are
social occasions, with lots of
other people around, and this
tends to increase the
physiological arousal.
As the adrenaline pumps,
customers’ heart beats
faster, and reactions
quicken. This is ideal for
something like sports, but
makes cool rational decision
making harder.
For example, the very rich often send delegates to auctions, and as well as avoiding the paparazzi.
This is a strategy to combat the over-excitement induced by being physically present in the
situation.
As auctions are time pressured, and
customers are bidding on something they
value highly. So Store Owners should take
advantage of this factors to earn huge money.
Win customers by auction psychology

3. A psychological bias that operates in auctions is the endowment effect,
where customers tend to overvalue things they already possess. By
encouraging customers to connect the bid with the sale item, bidding on
items lets them fantasize about owning things – stimulating a kind of
endowment effect.
ENDOWMENTEFFECT
Store owners should make auction catalogue (or the item picture
and description on a website) look attractive and professional. This
will make the psychological journey for customers to go on to
imagine owning this item in advance, so they would place a higher
value on it, and so pay more to make imagination reality.
Win customers by auction psychology

4.  Principle of scarcity is used by auctions whereby people overvalue things that they think
might run out. Auction items are scarce in that they are unique (only one person can have it),
and scarce in time (after the bids are finished, you’ve lost your chance).
 As a owner of shop, think how many shop sales successfully rely on scarcity heuristics such as
“Last day of sale!”, or “Only 2 left in stock!”, and you’ll get a feel for how powerful this
persuasion principle can be.
PRINCIPLE OF SCARCITY
Win customers by auction psychology

5. SOCIALPROOF
The other principle used by auctions is that of “social proof”. We all tend to
take the lead from other people; if everybody does something, or says
something, most of us join in before we think about what we really should do.
Auctions put a buyer in intimate contact with other people who are all
providing social proof that the sale item is important and valuable. So
advise for store owners is you can create the virtual bidders to be the leads
in the online auctions.
Win customers by auction psychology

6. COMPETITIVE
ELEMENTS
Researchers from Princeton make
their experiments which asked
volunteers to play online auctions
with different rules. The bidders
didn't end up paying much more
than they originally thought was
reasonable - but only if they thought
they were bidding against a
computer program. As soon as the
volunteers thought they were
bidding against other live humans
they found it impossible to bid
rationally, whatever the auction
rules.
This implies that the competitive
element of auctions is crucial to
provoking our irrational buying
behavior. The store owners can
definitely leverage this element to
involve buyers in an auction since
they’re not just paying to own the
sale item, they’re paying to beat
other people who are bidding
and prevent them from having
it. The quote from Gore Vidal
seems to be true “It is not enough
to succeed. Others must fail.”
BBC.com
Win customers by auction psychology

7. BOOST YOUR SALES WITH MAGESTORE
THROUGH AUCTION
Magento Auction - A new leverage to boost
your sales. The extension enables you to
carry out online auctions, allowing
customers to place a bid or auto bid for
products.
• Your game - Your rules: No fear of
overpricing or underselling
• Get customers involved in the auctions
and enjoy your rocket sales
• Flexible auction management
View Demo Now