Hi! In this quick video, I want to show
you
five simple things in price psychology
that you can use to make your prices
seem more attractive. Let's get into it.
Number 1...
Ego pricing. In one crazy study,
researchers were able to match
prices to people's birthdays and found
that it increased purchase likelihood.
They offered a pasta dinner for $39
and in the description, they just told
people about what that dinner would
entail,
but when it came to presenting the
actual price
that people would pay to get this pasta
dinner, they got a little tricky.
For some people, they changed the price a
little bit so that it matched their
birthday.
So if the participant was an April 15th
baby,
well then, the cost of the pasta dinner
would be $39.15.
When it came time for them to say how
likely they would be to purchase this
pasta dinner,
the people who saw a price with their
birthday in it reported 23%
greater likelihood of purchasing that
product.
Just 'cause it matched their birthday!
Number 2...
The comma effect. In another study,
researchers did something really simple.
They just presented people with prices
that either had commas in them
or not. So for example, the price $1,342
to some people would look like this...
and other people would look like this...
And the question is: "does that change
anything about how they perceive the
price?"
Yes, it does. Turns out that when there
was a comma in the price, people
perceived it as being 11%
bigger, relative to the non-comma price.
So keep those commas out of your prices
if you wanna make it look
a little bit lower.
Number three....the
"relative size effect."
Let's say you wanted to discount your
product. You would show people what the
price used to be...
and then show them what the price is now. But how do you present those prices?
Well, some research has looked at whether
you should make the sale price really
big to draw people's attention to it
or make the sale price really small...
because after all, you want people to
think it's a small number, relative to
the original price.
And what they find is that the version
where it's really small
is the optimal version. People report
greater purchase likelihood
when they present the sale price in
relatively small font
because it signals people to think of it
as a smaller number.
Number 4: Consolidated Surcharges
Let's say you have a product, and you
have to charge an additional fee for
shipping and handling
and a further additional fee for tax.
What do you do?
Well, the research shows that rather than
leave those two surcharges
separate--like this [see video], you should combine
them together into one lump
surcharge, even if it looks as though
that surcharg is bigger.
Finally, Number 5 -- high five! --
The Descending Order Effect
In one study, some researchers
infiltrated a bar...if only all
researchers could be so lucky.
What they did is for an eight-week period
in the bar,
they just got them to use different
beer menus every other week.
On some weeks, they would list the beers
on the menu in ascending order, from the
least expensive beer down to the most
expensive,
and on other weeks, they would list
the beers in the opposite order, starting
with the most expensive, and going down to
the least expensive.
And what they found is on the weeks
where the beers were listed in
descending order,
starting at the most expensive, people
chose
more expensive beers, on average, compared
to the weeks where the same beers were
listed in the opposite order.
On average, people had spent almost 24
cents more per beer
in the "descending order" condition,
compared to the
"ascending order" condition, and over those two
months, the bar sold more than 1,000
bottles of beer, so that 24 cents really
does add up.
So there you have it--five studies from
price psychology that may change the way
you think about prices.
If you found these interesting and
compelling, and you gotta know more,
click on the link under this video to be
taken to my full online course
about price psychology. We'll cover all
these things in greater detail plus
a ton more pricing strategies that you
can use
in your own marketing efforts. In fact, if you
use the link
that's below this particular video,
you'll get a certain percentage off the
total cost of the course.
And did I choose that percentage based
on price psychology?
Yeah, of course I did. I'll see you next
time!
