In the classic 4P marketing theory, Price is one of the most difficult to practice and evaluate in marketing.

In the classic 4P marketing theory, price is the most difficult to practice and evaluate in marketing. On the one hand, because of the current era of marketing work is extremely fragmented, the price of such a holistic, strategic work is cut very finely, difficult to clarify the clue; on the other hand, prices themselves are full of weirdness, not simply priced on the basis of cost and competition, but also involve many psychological factors.

10 kinds of price "tricks"

In "Priceless", the author Poundstone the "tricks" of several prices (prices include products, prices of services, and salaries for people).

1. Hidden price increases: Brands usually do not have direct price increases, but by reducing the amount of hidden prices. For example, let the bottom of the packaging deliberately recessed.

2. The magic of the number 9: Many products that are priced at the end of the number 9 will sell very well.

3. Anchor effect: The same pair of shoes, placed in 1000 yuan next to the shoes can sell 800 yuan, placed in 200 yuan beside the shoes but it is difficult to sell high prices. The same bottle of beer, the buffet and flagship store prices are the same, why customers complain about the canteen to blackmail?

4. The attraction of discount coupons: People are more willing to spend 200 yuan to buy a printer, and then get a discount of 25 yuan, instead of buying the same printer with a price of 175 yuan.

5. Bundling and splitting sales: Essentially, they are designed to avoid finding anchor points (reference points) so that they can easily compare prices. Airlines, for example, charge separate airfare and service items.

6. The price description is very important: discounts and gifts, in essence, the consumer's income may be the same, but consumers are more inclined to discount, people sometimes do not care about the choice itself, but is the choice of the description of the way, in another way, can achieve a different effect.

7. The first quotation in the negotiation, the more advantage: the equivalent of you set an anchor point, others will be based on this anchor point to bargain.

8. Drinking alcohol can make people unable to distinguish between "high risk" and "must lose": This is also to the wine table to talk about business reasons, drink a good drink.

9. Beautiful People pay higher: this is probably a basic rule, beautiful people always have more privileges.

10. The environment has an impact on the bargaining power of people: candidates on the way to the interview meeting room, the walls are surrounded by a variety of low pay news, then it is likely that he to talk about salary, will automatically reduce his salary expectations.

......

Behind these price "tricks" is a series of psychological factors at work, economists summed it up to 3 theory: anchoring effect, expected theory, ultimatum game. Of course, these three are also relevant.

Three theories of influencing pricing

First, the anchoring effect.

It's hard to say that the absolute value of a price can only be roughly one range, or a ratio. Prices are "constructed" (or "felt") by the human brain. People tend to feel prices by searching for external cues, which may be more familiar to them, something that may have just been seen, or a number that sellers may remind of. In short, people always try to compare prices and bargain by looking for "anchor points".

Therefore, the brand in the pricing, will certainly look for a competitive product for reference pricing, and in actual sales, but also deliberately set the environment (placing more expensive products), to imply that customers this product is cost-effective. "Rivet Effect" the best application of the case should be Taobao, the store will be marked with a large red font "than the counter with the price of cheap xxx"; however, clothing pictures will certainly match a Chanel bag, or packaging bag, enhance the sense of value.

Anchoring effects are also applied in negotiations. If one side uses information advantage, first call out a sky-high price, grasp the initiative of prices. Of course, the active call price, more applicable to the price information transparency is not high. For the high information transparency of today's labor market, the casual call out double riple wages, or to bear a certain degree of risk ...

Secondly, the theory of anticipation.

This is the basic theory of economics, including three basic concepts.

1. The concept of money is a relative feeling, and the choice of benchmarks is the key to people's judgment of their profits, or losses. The classic selling story of "How to buy a bike from a bicycle to the end" is the best case in the Web.

2. The loss of money to people's feelings of injury, will be much greater than the joy of getting the same money feeling. For example, the loss of 100 yuan, most people will feel that a bonus of 200 yuan to make up the loss of 100 yuan, and to double the joy of getting 100 yuan bonus, at least 400 yuan. The 2009 German billionaire Adolf Merkel killed half of his property, and he had a net worth of 1 billion dollars, but he could not comfort his loss of half his fortune.

3. Probability affects people's expectations of price. Very unlikely (1%), and guaranteed not to happen (0%) is a big difference, which is why people are willing to buy insurance. If there are 4 criteria, according to the proceeds, losses, and possible occurrences, set a matrix, then there will be 4 types of behavior: In considering the proceeds, the risk aversion will choose "a bird in the hand, better than the two birds in the bush", and the person pursuing the risk will choose "ventured gained"; When considering the loss, Risk-averse people will choose "not afraid of 10,000, only if", and the pursuit of risk will choose "solitary note zheng, burn his bridges." A person can be both a risk-averse and a pursuit of risk, depending on the resources, environment.

Third, the ultimatum game.

In short, the ultimatum game is, the girls buy clothes to the seller said: "So much money, can sell to sell, do not sell away!" "That is, set a bottom line and a deadline--talk about it, then the two people benefit (although one side has less revenue); Or sellers first ultimatum: "To buy this price, or pull down!" ”

Theoretically, the first ultimatum people because of taking into account a mutually beneficial situation, will give each other a relatively generous (but still unfair) price, and the other side will consider the situation, accept no matter how much income, there is always better than no! But in the real experiment, the conclusion is surprised, the ultimatum people selfish to retain most of their interests to themselves, leaving only a small portion to each other, while 35% of the ultimatum was angry rejected the obvious unfair conditions, preferring to choose between the two. This is quite a test of the level of the ultimatum, as well as the mood, attitude, culture, age and environment of the ultimatum. For example, Jews are the few people in the world who can accept low prices, so it makes no sense to adopt a single "low price".

Gift: Thinking Beyond Price

A few months ago, we were working on a "giveaway value" project, a small giveaway that was really inadequate for a company with deep pockets, lavish (or feeling rich), and did not need to expend too much effort on "worth". But for another type of company, it is worthwhile to devote energy to the construction of "gift value measurement system"-How to evaluate the value of gifts in the minds of consumers? How do you build this value within the bounds of cost? How to promote authentic sales by building value? These can reduce the unnecessary cost of enterprise behavior, improve the return on investment.

Giveaway valuation is only the most basic job of marketers, but the more difficult is actually priced. How to determine a reasonable price based on cost, competition strategy and consumer psychology is very difficult and sometimes subjective, especially in the absence of mature and comprehensive theoretical guidance and a lack of understanding of consumer psychology. So, need to learn and cherish.