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Course Outline

Introduction

Overview of Pricing Psychology

  • The importance of pricing.
  • The power of the number nine in pricing.
  • Price anchoring.
  • Facilitating price comparisons.

Selecting the Right Price

  • Strategies for matching the target audience.
  • The '99' effect.
  • Comparing 95 versus 99.
  • Avoiding odd-ending prices.
  • The precision effect.
  • Ego-driven pricing.

Presenting the Price to Consumers

  • The syllables effect.
  • Adding cents to prices.
  • Using commas in pricing.
  • The verticality effect.
  • The male-red effect.

Framing Strategies for Pricing

  • The 'pennies-a-day' effect.
  • The 'spare change' effect.
  • Gain-framing combined with prices ending in 9.
  • Time-based framing.

Presenting the Product to Consumers

  • Offering compromise options.
  • The decoy effect.
  • The descending order effect.
  • The anchoring effect.

Offering Product Sales and Discounts

  • The subtraction principle.
  • Ensuring ease of discount computation.
  • Percentage-based discounts.
  • Relative size and relative distance.
  • The verbal matching effect.
  • Vertical and horizontal positioning.
  • Effects of left and right digits.
  • Discount limits.

Handling Additional Charges

  • Partitioned pricing.
  • Presenting surcharges.
  • The role of the surcharge amount.
  • The surcharge consolidation effect.
  • Reversal of partitioning.

Summary and Conclusion

Requirements

  • A foundational understanding of sales, marketing, and pricing.
  • An interest in psychological theories and research relevant to business.

Target Audience

  • Entrepreneurs
  • Marketing professionals
  • Sales personnel
 7 Hours

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