11 pricing strategies that confuse consumers

Summary: There are two main reasons for this kind of tips to work: first, consumers don't know how much the product should be spent, So we rely on the less rigorous part of our brain; second, although the dollar is limited, we make decisions based on the clues and semi-thinking that can lead to blind mathematics. You walked into a Starbucks and saw two sets of coffee in the store...

There are two main reasons for this kind of tips to work: first, consumers don't know how much the product should be spent, So we rely on the less rigorous part of our brain; second, although the dollar is limited, we make decisions based on the clues and semi-thinking that can lead to blind mathematics.

When you walk into a Starbucks, you can see that the store provides two packages for the same cup of coffee: the first is to increase the price by 33%, and the second is to cut the price by 33%. Which one is better?

"They are almost the same !", If you're the same as a student in a new study published in Journal of Marketing, you're wrong!

The two packages seem to be equal, but in fact, a 33% price reduction is equivalent to an additional 50%. Math computing time: assume that the price of standard coffee is one dollar, three coquats (that is, 0.33 USD per coqule ), for the first package, you can buy 4 coffee off ($0.25 per boast) and 3 coffee off ($0.22 per boast) at 66 cents ).

Result:It is better to get extra things for free than get the same things and spend less money.This simple fact is widely used. Selling oatmeal? Don't talk about price reduction. Let's talk about how big the box is! Selling cars? The province talks about the port of MPG conversion and how many miles can it run.

There are two main reasons for this kind of tips to work: first, consumers don't know how much the product should be spent, So we rely on the less rigorous part of our brain; second, although the dollar is limited, we make decisions based on the clues and semi-thinking that can lead to blind mathematics.

The following are ten other ways in which consumer mathematics is poor, with the help of historian and writer William Poundstone.

(2)We were severely affected by the first number.When you enter a high-end store, assume Hermès is a world-famous luxury brand .) You can see that the price of a bag is USD 7000 ." Haha, that's really expensive !" You and your friends said ." Buy a pack for $7000 !" Then you find a good watch, which is priced at $367. And tianmeishi (Timex is the most popular fashion watch brand in the United States. It focuses on low-end products .) Watch, this is absolutely super expensive. But this is definitely a bargain compared to the $7000 bag you just remembered. In this way, the store can adjust or set your consumption expectations.

(3)We are afraid of extremes.We do not like the cheap feeling, and we do not like being cheated. Since we are not sure about the value of products, we will avoid high or low prices. Sellers will take advantage of our moderate preference to deal with us. The following is a good story:

There are two options for beer: $2.5 high-end beer and $1.8 low-cost beer. About 80% of people choose the more expensive beer. The first three types of beer are introduced now. In addition to the first two types, there is also an ultra-cheap beer that costs only $1.6. Now 80% of people will buy $1.8 of beer, the rest will buy beer for $2.5. No one chooses the cheapest beer.

For the third time, they removed $1.6 of ultra-cheap beer for a $3.4 ultra-high beer. Most people choose beer of $2.5, a small portion choose beer of $1.8, and about 10% choose the most expensive beer of $3.4.

In short, we are all kingfa girls. (Goldilocks, the name of the girl in the fairy tale "The Story of the Three Bears. In the story, goldilocks went to the three little bears's house and always chose hard and soft chairs and beds ).

(4)We all love reason.What happened when Williams Sonoma added a $279 toaster next to a $429 model, as explained in his book priceless treasure: the sales volume of a cheap one doubles, although almost no one actually buys the $429 toaster. Lessons learned: if a product cannot be sold, try to place a product with a shape that is almost the same, but the price is twice the price. This makes the first product look like a bargain. One reason for this policy is that people like it. Since it is difficult to know the real value of a product, we need some arguments to explain our decisions to ourselves. The price difference provides us with one reason and one motivation: The $279 toaster is about 40% cheaper than the other-we're taking advantage of it! Good reason.

(5)We will do what we are told.Behavioral economists like to do experiments at school. They find that shining on the fruit and placing the salad like candy can make the children eat more fruits and salads. However, adults are also influenced by these simple games. For example, some smart restaurants use simple techniques, design menus such as slices and frames to attract our eyes to the most profitable dishes. Good rule of thumb: If you see that a dish on the menu is highlighted, framed, illustrated, or put together with a very expensive dish, it may be a highly profitable product, and you may want to see it and consider it.

(6)Let's put our emotions under control.In a famous experiment in the book of pound stone, volunteers are offered a certain amount of money of less than 10 dollars. Some bid that is considered unfair (for example, $1) will activate the cerebral cortex, "and this will also be caused by pain and foul smell ". When we think we are being slaughtered, we generally feel sick-even a good deal. Pound stone equate this with a mini-bar experiment. It's very late. If you are very hungry, there will be a leader, but the price will make you feel very uncomfortable, so you decide you 'd rather starve yourself and don't think you are killed. On the other hand, cheap goods make us feel good, even the world's most useless junk will be attractive, as long as the price is very cheap.

(7)It is easy for us to get alcohol, time, and decision to become dumb.When you were young, you were drunk at a bar, and you were easy to do stupid things with strangers ." Have I fully evaluated this complicated romantic scene ?", After 7 drinks, this question is very difficult to answer, so we usually ask ourselves a simpler question: "Is he/she sexy ?" When we are drunk, stressed, tired, and so on, we are more likely to ask and answer some simple questions about shopping. In grocery stores, cheap candy bars and chewing gum are usually placed near the cashier, because tired shoppers are most likely to indulge in desires without paying attention to the price. A liquor lunch is good for reaching an agreement because alcohol immediately reduces the complexity of our head. If you want someone to take an underestimating risk, get him drunk, or make him tired or exhaust himself.

(8)We love the transaction cost.In this private financial column, Megan McArdle asks her readers to discard regular payment transactions, such as gym members and newspapers and services not used for subscription ." Don't buy things you don't want to consume ." It seems to be a clear idea, But Mei GEN has an important point. We are attracted by subscription, membership, and bundled products, in part because we try to avoid transaction fees. We would rather pay a little more than taking out our wallet and watching our money flow to every Gym quarter/movie.

(9)However, we are very strange about kickbacks and guarantees.Now that I have told you that the consumer should avoid other payments, I should add two additional payments that we like: kickbacks and guarantees. The first kind of fantasy about buying wealth (I have money to pay for it !) The second is the psychological peace of buying (now I can have this thing forever, don't worry !) ." Instead of buying one item and getting a discount, "he wrote." Why don't I pay a lower price at the beginning ?". "[Warranty] doesn't make sense," David Cutler, a Harvard economist, told the Washington Post. the implied probability of a product being damaged is much higher than that of repair or replacement. If you buy a $400 item, for most consumers, the consumption level is not a risk you need to guarantee under any circumstances ."

(10)We are infatuated with digital 9. up to 65% of retail prices end with 9. Why?Everyone knows that $20 and $19.99 are the same thing. But number 9 tells us a simple truth: this commodity is discounted. This item is cheap. This item is priced by someone who knows you like discounts and cheap products. In other words, 9 has exceeded the charm price position, and has become a cable between the buyer and the seller carrying a silent understanding, indicating that the product pricing is very reasonable and competitive. 9 of the prices for shell fish platter in a high-end restaurant are stupid. No one who wants to eat lobster for $170 will seek a discount. However, when buying underwear for the same person (the research has repeatedly showed), the price is more likely to end with 9. Remember: Shopping is a attention game. Consumers are not only looking for products. They are also looking for evidence that the product is worth buying. The corners of our brains looking for cheap goods/discounts found deals that can be achieved in number 9.

(11)We are under a strong sense of fairness.I have already explained how our brain reacts differently when we see cheap goods and slaughter goods. The shopper's brain is driven by a sense of fairness. We go back to the point where we don't know how much it should cost, so we use clues to tell us how much it should cost for goods. Dan Ariely, an economist, explained this very well. Areili lied that he was going to hold a poetry fair. Then he told a group of students that tickets would cost money and told another group of students that they could afford to participate in the fair. Then he told the two groups that longpolling would be free of charge. The first group of students were eager to participate and thought they had some valuable things for free. The second group of students refused and thought they were forced to volunteer for the same things, but did not compensate. What is the value of longlang in the poetry of an behavioral economist? The students do not know. This is the key. I don't know. This is also the key. What is the value of a fully-fastened shirt? What is the value of a cup of coffee? What is the value of a person's life insurance policy? Who knows! Most of us do not know. As a result, the shopping brain only uses visual clues, stimulating emotions, comparison, proportions, and feelings about cheap goods and commodities. We are not stupid. It is easy to be affected.

 

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