You're browsing winter coats online and the first one you click costs $850. Suddenly, the $320 jacket in the next tab doesn't seem so expensive anymore, even though twenty minutes ago you would've balked at spending that much on outerwear.
Your brain just got played by the contrast effect, and retailers have been using this concept successfully for quite awhile.
The contrast effect is a cognitive bias where your perception of something may be influenced by what you've just encountered rather than evaluating it on its own merits.
That moderately priced coat isn't objectively affordable, it just feels that way because you're comparing it to the luxury option you saw first.
This shows up everywhere in your daily spending. Walk into a furniture store and they'll often show you the premium leather sofa first. The mid-range option suddenly looks like a steal.
Browse streaming service plans and the "premium" tier makes the standard plan feel like the sensible middle ground, even if you'd never considered paying that much before seeing the comparison.
Psychological analysis shows that when we look at an expensive item first, moderately priced alternatives appear cheaper than if we'd encountered them in isolation. The difference isn't in the product, it's in the sequence of what we see.
And it's not just about price. You taste a mediocre wine after an excellent one and it seems worse than it actually is. You test drive a luxury car before looking at your actual budget options and everything else feels lacking. The contrast amplifies the perceived gap between options.
Now that Contrast Effect is on our radar, here is how we can use it in our daily life: before making any purchase over $100, write down what you're willing to spend before you start shopping. That number is your anchor, not whatever you see first.
When browsing online, start with mid-range options in your actual budget. If you look at premium items first "just to see," you're setting yourself up to overspend on something that would've seemed expensive five minutes earlier.
Notice when salespeople or websites show you the most expensive option first. That's not random, it's strategic sequencing designed to make everything else look reasonable by comparison.
Take a break, reset your expectations, and come back to evaluate options on their own terms.
Ask yourself: "Would I consider this a good deal if I hadn't just seen that other option?" If the answer is no, you're probably experiencing contrast effect, not finding actual value.
The goal isn't to always buy the cheapest thing. It's to make decisions based on what something is worth to you, not on whatever you happened to see first.
Did this resonate with you? Forward it on to someone who could use it too. These insights are better when shared.
Cheers,
Alex
Disclaimer: I'm a curious researcher, not a licensed psychologist. I study these concepts because I believe understanding how our minds work can help us navigate life more effectively. This content is for educational purposes only and should not replace professional advice. Please consult qualified professionals for personal guidance. Individual results may vary, and readers should use their own judgment when applying these concepts.