The Psychology Of Prices
If you think that you know how to work a sale, are a pro at salary negotiations, and got a great deal on your latest car purchase — well, maybe you are. Or maybe you’ve been fooled. Maybe you only think you got a great deal. In this segment, we’ll talk with William Poundstone, author of the new book “Priceless,” about the psychology of pricing. From that shirt on sale for $19.99, marked down from $53, to that carton of eggnog ice cream that seems to get a little smaller each year, we’ll talk about the psychological tricks that retailers use to try to get you to pay more than you might want to.
Psychology of pricing is fascinating. I recently read Neuro Web Design: What makes them click?, which included some really great info on the topic.
For example, you’re much more likely to sell an accessory for a big ticket item when the consumer is making the initial purchase rather than when they come back for the accessory later. The reason is because when compared to the price of the big ticket item, the accessory price seems much lower and palatable.
Also, people are prone to picking the first item on a list, so always sort descending by price if you want to maximize sales. Great post… great subject!
Psychology of pricing is fascinating. I recently read Neuro Web Design: What makes them click?, which included some really great info on the topic.
For example, you’re much more likely to sell an accessory for a big ticket item when the consumer is making the initial purchase rather than when they come back for the accessory later. The reason is because when compared to the price of the big ticket item, the accessory price seems much lower and palatable.
Also, people are prone to picking the first item on a list, so always sort descending by price if you want to maximize sales. Great post… great subject!