Contrast-Misreaction Tendency
Contrast can distort judgment when an option is evaluated mainly against its surroundings rather than on its own merits. Small changes can also escape notice when each is compared only with the immediately preceding state.
THE IDEA
CONTRAST-MISREACTION TENDENCY
The greater the contrast, the greater the potential. Great energy only comes from a correspondingly great tension of opposites.
—Carl Jung
Because the nervous system of man does not naturally measure in absolute scientific units, it must instead rely on something simpler. The eyes have a solution that limits their programming needs: the contrast in what is seen is registered. And as in sight, so does it go, largely, in the other senses. Moreover, as perception goes, so goes cognition. The result is man’s Contrast-Misreaction Tendency. Few psychological tendencies do more damage to correct thinking. Small-scale damages involve instances such as man’s buying an overpriced $1,000 leather dashboard merely because the price is so low compared to his concurrent purchase of a $65,000 car. Large-scale damages often ruin lives, as when a wonderful woman having terrible parents marries a man who would be judged satisfactory only in comparison to her parents. Or as when a man takes wife number two who would be appraised as all right only in comparison to wife number one.
A particularly reprehensible form of sales practice occurs in the offices of some real estate brokers. A buyer from out of the city, perhaps needing to shift his family there, visits the office with little time available. The salesman deliberately shows the customer three awful houses at ridiculously high prices. Then he shows him a merely bad house at a price only moderately too high. And, boom, the broker often makes an easy sale.
Contrast-Misreaction Tendency is routinely used to cause disadvantage for customers buying merchandise and services. To make an ordinary price seem low, the vendor will very frequently create a highly artificial price that is much higher than the price always sought, then advertise his standard price as a big reduction from his phony price. Even when people know that this sort of customer manipulation is being attempted, it will often work to trigger buying. This phenomenon accounts in part for much advertising in newspapers. It also demonstrates that being aware of psychological ploys is not a perfect defense. When a man’s steps are consecutively taken toward disaster, with each step being very small, the brain’s Contrast-Misreaction Tendency will often let the man go too far toward disaster to be able to avoid it. This happens because each step presents only a small contrast with his present position.
A bridge-playing pal of mine once told me that a frog tossed into very hot water would jump out, but that the same frog would end up dying if placed in room-temperature water that was later heated at a very slow rate. My few shreds of physiological knowledge make me doubt this account. But no matter, because many businesses die in just the manner claimed by my friend for the frog. Cognition, misled by tiny changes involving low contrast, will often miss a trend that is destiny.
One of Ben Franklin’s best-remembered and most useful aphorisms is “A small leak will sink great ship.” The utility of the aphorism is large precisely because the brain so often misses the functional equivalent of a small leak in a great ship.
When to use it
Sales: comparing an option with alternatives and with an independent estimate of its value.
Negotiation: Make an extreme initial offer to make a subsequent, still favorable offer appear generous.
Personal finance: Avoid 'lifestyle creep' by recognizing that small, incremental upgrades can cumulatively derail your budget.
Marketing: checking whether an advertised reference price represents a genuine comparison or creates a misleading impression of savings.
FROM THEORY TO EVERYDAY LIFE
In practice
Luxury Car Dashboard
A buyer purchases an overpriced $1,000 leather dashboard for their new $65,000 car because the dashboard price seems trivial in contrast to the car’s price, even though the dashboard alone is poor value.
Real Estate Sales Tactic
A real estate broker shows a client three awful, overpriced houses followed by a merely bad house at a moderately inflated price. The contrast makes the final house seem like a good deal, leading to a quick sale.
Retail Pricing Manipulation
A vendor sets an artificially high “original” price, then advertises the standard price as a huge reduction. Customers perceive great value even when they know the tactic is used, leading to increased sales.
Frog in Slowly Heated Water
While the literal frog story may be apocryphal, it illustrates how gradual, low-contrast changes can go unnoticed until a catastrophic outcome is reached. Businesses often fail this way, missing small negative trends until it’s too late.
Marriage Decisions
A person may choose a spouse who seems wonderful only by comparison to a previous terrible partner, or a woman with abusive parents may marry a man who appears good only because he is slightly better than her parents, ignoring his actual flaws.
A MOMENT TO REFLECT
Put it to work.
How can you use the Contrast-Misreaction Tendency to design better pricing strategies in your business without misleading customers?
Think of a recent decision where contrast influenced your choice more than absolute value. How might you correct for this in the future?
Identify an area of your life where small, gradual changes may be leading you toward an unfavorable outcome. What steps can you take to recognize and reverse the trend?
CONTINUE THE CONVERSATION
Source texts
- Wisdom Theory 100 Mental Models (2020) (Wisdom Theory)