Psychology of Price & Product Perception
Change in the decision-making context can make people pay more for the same product, customers might be happier if they wait longer, and an irrelevant offer can be a game-changer.
What you will learn
- How to use context and effort to your advantage and how you can describe a product so that even a higher price feels justified
- What’s an anchor and how to use it in pricing
- Why we tend to focus on what’s in the middle and how it can increase sales
- How to design “decoy offers” that no one actually buys but serve to increase sales
- How to make sure a free gift doesn’t decrease the value of your product
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Content in detail
This module is split into five parts. First an introduction to the topic followed by examples, case studies, and actionable steps related to 4 key principles of the perception of price and product.
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011 – Introduction to the perception of price and product
Meet the most famous behavioral economist in the world and best-selling author of books on how irrational we are, what motivates us, or what makes customers tick. He explains why prices are relative and why tiny changes in communication can completely alter our perception.
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022 – Fairness
You’ll learn why we consider a price to be fairer when visible effort is involved. This part of the module will reveal a few simple tricks that business owners can use to justify a higher price.
We want prices that feel fair, otherwise, we won’t buy anything. Yet, the way we assess fairness is quite arbitrary.
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033 – Anchoring
Why is there a $69 hotdog and what does it have to do with selling more $20 dollar burgers? Find out how having different reference points can shift decisions into all sorts of directions and what piece of initial information you should offer your customers to seal the deal.
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044 – Decoy and Middle Option
Discover the magic bullet solution that shines the spotlight on the product you want to sell more of without having to fiddle around with the price. All it takes is adding a clever third option that no one actually buys, yet is capable of casting the perfect spell on your customers.
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055 – Power of Free
We all want free stuff. But could there be any downsides to offering freebies? As it turns out, quite a few, actually. “More than dishy, free can be seen as fishy!” And there’s more good and bad than you probably knew about… Learn how to use freebies wisely.
Course instructor
Surprise Guest
Prof. of Behavioral Economics
Duke University
One of the most famous behavioral economists in the world, renowned speaker, and best-selling author.
Pricing
This Online Course
Lifetime access to:
- 1h18 video lectures
- (English, Portuguese & Italian subs)
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