People evaluate their own performance, appearance, and situation. The intuitive assumption is that this evaluation is based on objective standards—numbers, facts, absolute criteria. Yet in reality, people primarily orient themselves to others: Am I more successful than my colleagues? Do I earn more than my neighbors? Do I look better than others my age? These constant social comparisons influence satisfaction, motivation, and purchasing decisions. The question is: How strongly do comparisons with others shape our self-assessment? When do we compare upward versus downward? What mechanisms underlie this process—and what does the evidence tell us?
Studies
The Westgate Dormitory Study
Leon Festinger conducted a groundbreaking field study in 1954 that established social comparison theory. He examined residents of the Westgate student housing complex at MIT and surveyed them about their opinions on the tenants' association. The striking finding: residents' attitudes depended not on objective factors, but rather on what their immediate neighbors thought. Festinger documented that 58% of residents aligned their opinions with those of their hallway neighbors, compared to only 23% with people in other parts of the building. People do not orient themselves to objective standards, but to the most readily available comparison persons—even when these comparisons are arbitrary.
The Salary Experiment
In 1997, Sonja Lyubomirsky and Lee Ross conducted an experiment at Stanford University demonstrating how heavily satisfaction depends on comparison. They asked 257 students: 'What would you rather earn?' Option A: $50,000 per year, while others earn an average of $25,000. Option B: $100,000 per year, while others earn an average of $200,000. Objectively, Option B offers twice as much money. Nevertheless, 56% of participants chose Option A—preferring less absolute income as long as they were relatively better off. In a variation where purchasing power was held constant, the preference for relative advantage increased to 62%. People don't want to be rich; they want to be richer than others.
The Runner Ranking Experiment
Dan Gilbert and his colleagues conducted a fascinating experiment on Olympic medal winners in 1995. They analyzed video footage of athletes on the podium at the 1992 Olympic Games and had independent raters evaluate the athletes' facial expressions. The remarkable result: bronze medal winners displayed significantly more joy on average than silver medal winners. The bronze winners compared downward ("I won a medal—I could have finished fourth"), while silver winners compared upward ("I was so close to gold"). Objectively, silver is better than bronze, but satisfaction is determined by the comparison context, not by absolute performance.
Principle
Which principle for Customer Experience Design can be derived from this? The central principle is: Control the comparison group to steer the perceived value of your offering. Since people make satisfaction and purchase decisions primarily through social comparisons, companies can significantly influence how customers perceive their products and services through strategic contextualization. This approach is particularly effective in situations involving high uncertainty or complex products, where customers rely heavily on external reference points. However, this steering only works with credible and customer-relevant comparison groups—manipulative or obviously biased comparisons can damage trust. The following guidelines show how to implement this principle in practice.
Guidelines
Define comparison context strategically
Present your offer in the context of alternatives that make your product appear advantageous. Display more expensive or inferior options as reference points. A premium product seems reasonable when positioned alongside luxury alternatives, yet overpriced when compared to budget options. Actively control the comparison set through strategic selection of displayed competitors or product variants. In B2B contexts, position the customer within a successful peer group rather than a superior one.
Using downward comparisons for satisfaction
# CX Guideline: Using Downward Comparisons to Increase Satisfaction After purchase or with existing customers: Remind them of their previous situation or worse alternatives. 'Then vs. Now' comparisons boost satisfaction. Case studies should feature customers who faced greater challenges and improved through your product. In service interactions: Demonstrate how much more difficult the problem would be without your solution. Downward comparisons protect against dissatisfaction caused by habituation.
Designing Inspiring Upward Comparisons
Use successful customers as role models, but ensure the path feels achievable. Show concretely how others reached their goals and demonstrate that the next step is feasible. Framing like "Customers like you achieved X by..." works well. Pure success stories without revealing the path can frustrate rather than motivate. The comparison must inspire, not discourage. Therefore, testimonials should always illustrate the process, not just the outcome.
Emphasize relative rather than absolute advantages
CX Guideline: Emphasize Relative Rather Than Absolute Benefits Communicate benefits through comparisons, not absolute terms. Instead of "Save 500 euros," say "Save 30% more than alternative X." Rather than "99% availability," state "50% fewer outages than the industry average." People struggle to contextualize absolute numbers, while relative comparisons are immediately understandable. In pricing, show customers how much they save compared to their current solution, not just the absolute price.
Label popular options
Mark frequently chosen options as 'Popular' or 'Chosen by X customers'—especially in configuration processes with many options. Social comparison reduces uncertainty. When I see that '73% of families' choose an option and I am a family, that's a powerful signal. The following examples illustrate this guideline:
- Versicherungsoptionen: 'Most popular' for the middle protection package - helps with decision-making without being manipulative.
- Hotel-Buchung: '87% of guests add breakfast' - descriptive norm instead of sales pressure.
Similar customers quote
Don't just show what customers generally choose—show what "customers like you" choose, segmented by relevant criteria. Comparisons with similar others are more informative and persuasive. For example, "Companies of your size typically choose..." resonates more strongly than "Most customers choose..." The following examples illustrate this guideline:
- B2B-Software: 'Other companies in the construction industry primarily use...' - industry-specific social proof.
- Reise-Buchung: 'Families with children also frequently book...' - segmented by travel group type.
Show expert recommendations
Provide 'Editor's Choice' or expert recommendations as an alternative to pure social proof—particularly for niche products or when a large customer base doesn't yet exist. For new or specialized products, there is no 'most popular' option. Expert recommendations fill this gap: 'Our product experts recommend...' or 'Award winner in...' The following examples illustrate this guideline:
- Weinhandel: 'Sommelier Recommendation' next to popular wines - expertise instead of just popularity.
- Tech-Reviews: 'Recommended by TechCrunch' or 'Editor's Choice at CHIP' - external authority.
Festinger, L. (1954). A Theory of Social Comparison Processes. Human Relations, 7(2), 117-140
Festinger, L. (1954). An Analysis of the Influence of Social Comparisons in the Evaluation of Opinions and Abilities. MIT Technical Report
Lyubomirsky, S. & Ross, L. (1997). Hedonic consequences of social comparison: A contrast of happy and unhappy people. Journal of Personality and Social Psychology, 73(6), 1141-1157
Medvec, V. H., Madey, S. F. & Gilovich, T. (1995). When less is more: Counterfactual thinking and satisfaction among Olympic medal winners. Journal of Personality and Social Psychology, 69(4), 603-610