Instead, introduce pricier options first to change people’s
Posted: Sun Jan 19, 2025 6:07 am
Anchor pricing works well with promotional pricing. If a washing machine originally cost "$2,000 but is only $1,400 today," the initial anchor pricing will make $1,400 look like a great deal. Just setting the price at $1,400 isn't impactful. Retail stores use this strategy. Televisions are very expensive. And the TV you want to buy is cheaper, which feels like a good deal compared to the anchor pricing.
With the price list in order, our eyes will now turn algeria email list directly to the most expensive products. So, within the package pricing tiers, the premium version is on the far right and the lower tiers are on the left. Melina says that in Western culture we are used to this layout. But in other cases, prices are sorted from high to low. For example, feature your most expensive product first in an email or brochure, then lower the price later. This can improve perceptions of value before introducing lower-cost options.
In both cases, the key is to establish the ideal anchor early on. A smart anchoring strategy can make a target option look better in a specific context. Don’t misrepresent the actual normal price or do a bait-and-switch — stay ethical, says Melina. Over time, expectations adjust based on perceived price history, so early positive correlations are critical.
Taken together
Behavioral economics lifts the lid on the biases that drive consumer behavior. While buyers think they are objectively weighing information, science shows that unconscious emotional forces guide decisions. This complicates a marketing message that was meant to be considered purely rational.
With the price list in order, our eyes will now turn algeria email list directly to the most expensive products. So, within the package pricing tiers, the premium version is on the far right and the lower tiers are on the left. Melina says that in Western culture we are used to this layout. But in other cases, prices are sorted from high to low. For example, feature your most expensive product first in an email or brochure, then lower the price later. This can improve perceptions of value before introducing lower-cost options.
In both cases, the key is to establish the ideal anchor early on. A smart anchoring strategy can make a target option look better in a specific context. Don’t misrepresent the actual normal price or do a bait-and-switch — stay ethical, says Melina. Over time, expectations adjust based on perceived price history, so early positive correlations are critical.
Taken together
Behavioral economics lifts the lid on the biases that drive consumer behavior. While buyers think they are objectively weighing information, science shows that unconscious emotional forces guide decisions. This complicates a marketing message that was meant to be considered purely rational.