Hi! In this quick video, I want to show
youfive simple things in price psychology
that you can use to make your pricesseem more attractive. Let's get into it.
Number 1…Ego pricing. In one crazy study,
researchers were able to matchprices to people's birthdays and found
that it increased purchase likelihood.They offered a pasta dinner for $39and in the description, they just told
people about what that dinner wouldentail,but when it came to presenting the
actual pricethat 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 theirbirthday.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 thispasta 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 themor not. So for example, the price $1,342to 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 theprice?”Yes, it does. Turns out that when there
was a comma in the price, peopleperceived it as being 11%bigger, relative to the non-comma price.So keep those commas out of your prices
if you wanna make it looka little bit lower.Number three….the
“relative size effect.”Let's say you wanted to discount your
product. You would show people what theprice 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 reallybig to draw people's attention to itor make the sale price really small…
because after all, you want people tothink it's a small number, relative to
the original price.And what they find is that the version
where it's really smallis the optimal version. People report
greater purchase likelihoodwhen they present the sale price in
relatively small fontbecause it signals people to think of it
as a smaller number.Number 4: Consolidated SurchargesLet's say you have a product, and you
have to charge an additional fee forshipping and handlingand a further additional fee for tax.
What do you do?Well, the research shows that rather than
leave those two surchargesseparate–like this [see video], you should combine
them together into one lumpsurcharge, even if it looks as though
that surcharg is bigger.Finally, Number 5 — high five! —
The Descending Order EffectIn one study, some researchers
infiltrated a bar…if only allresearchers 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 theleast expensive beer down to the most
expensive,and on other weeks, they would list
the beers in the opposite order, startingwith the most expensive, and going down to
the least expensive.And what they found is on the weeks
where the beers were listed indescending order,starting at the most expensive, people
chosemore expensive beers, on average, compared
to the weeks where the same beers werelisted in the opposite order.On average, people had spent almost 24
cents more per beerin the “descending order” condition,
compared to the”ascending order” condition, and over those two
months, the bar sold more than 1,000bottles of beer, so that 24 cents really
does add up.So there you have it–five studies from
price psychology that may change the wayyou 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 courseabout price psychology. We'll cover all
these things in greater detail plusa ton more pricing strategies that you
can usein your own marketing efforts. In fact, if you
use the linkthat's below this particular video,
you'll get a certain percentage off thetotal 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!
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