Price is an important element for the marketers as it represents marketers’ assessment of the value customers see in the product. It presents the value of the product or the service and right pricing strategy can help marketers effectively grow their sales.

Entrepreneur contributor Darian Kovacs has shared four psychological techniques to help marketers improve their product pricing.

Kovacs says, “It’s no secret that successful marketers employ psychology in getting a sale. Sure, we humans love to think of ourselves as highly rational beings who weigh our options logically before making a decision; but several studies have confirmed the powerful role emotions play in purchasing. As Gerald Zaltman wrote in his book, How Consumers Think, 95 percent of purchasing decisions occur in the subconscious.

So, if you are looking to improve product pricing, here are four “classic” psychological techniques which can have a striking effect on consumer purchasing behavior.

1. The decoy effect: Introduce a “useless” price.

The “decoy effect” is a familiar term in marketing. Here, via an article on LinkedIn by conversion expert Jeremy Smith, is an example that starts with your arrival at the cinema for a movie, and your consideration of two price options for popcorn:

Small popcorn — $3.00

Large popcorn — $7.00

If you’re like most people, you’ll go for the $3.00. The reason is simple. You’ll rationalize that you don’t really need the large popcorn”.

4 Psychological Techniques That Can Improve Your Product Pricing

Entrepreneur

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