Pricing
From the book ‘Priceless’
Alex Murrel is a marketing strategist. He tweeted seven rules of pricing from the book ‘Priceless: The Hidden Psychology of Value’
Attraction effects: Products priced at extremes can change the demand for other products.
Extremeness Aversion: In conditions of uncertainty, most consumers will opt for something in the middle.
Charm Pricing: Buyers deem prices ending in a 9 as better value than those that don’t.
Loss aversion: Money we have is around twice as valuable as money we don’t have.
Anchoring & adjustment: The original prices acted as anchors from which the groups adjusted down.
Ultimatum game: We’re willing to forgo gains if we think they’re unfair.
Wealth effects: The relationship between money & happiness is not linear.
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