Few decisions impact the bottom line of a product or service more than those involving price. Price too low and a company could be leaving significant sums on the table and risk forever scarring their brand reputation according to the popular axiom that “Price Connotes Quality”. Price too high and be prepared to revise your […]
Understanding the core principles of anchoring can not only shed light on how consumers perceive price, but aid researchers in conducting pricing research, says Shamvir Singh. A core part of behavioural economics is the ‘anchoring principle’. Anchoring occurs when consumers use an initial piece of information to make subsequent judgments. Once an anchor is set, other […]
I am a lifelong fan of the San Francisco Giants. I waited a long time before they finally won a World Series in 2010, and then again in 2012 and 2014. Of course, now that they have won it a few times, I want them to do it more often; and I pay close attention […]
Customer segmentation is a simple concept – identify groups of customers who tend to have similar levels of price sensitivity and set distinct prices for each group. Unfortunately, many companies either think all their customers are the same, or they don’t have enough information to create segments. In particular, we often see this in retail […]
If a company is creating a new market or new market niche, it may be important to build critical mass early in the process. Doing so might enable them to spread their infrastructure costs over a wider base of business. In that case, it could make sense to use penetration pricing which offers low prices […]
There was an interesting article last week in Research Live about the gamification of pricing research arguing that traditional approaches need to be more engaging in order to improve data quality, limit respondent bias and reduce the rationalisation of responses. Improving traditional approaches and respondent engagement can only be a good thing but the underlying […]
I resolve to: Set prices according to the value we bring to customers, not according to my costs. Use the rich data I have in my transactions and CRM interactions to better understand my customers’ needs, how they react to prices and offers, how their prices compare to similar customers and situations, the reasons we […]
Customers are smart, they’re cagey and quick; They know their vendors can be like St. Nick. When quotas are missed in the first period or two, Gifts and discounts for customers old and new. “Hey Dasher, hey Dancer, hey Prancer and Vixen, It’s time for your sales team to be a blitzin’. Come to my […]
If you are a seller employing the large discount strategy, you should analyze your transactions to see what proportion of your sales are transacted at the full list price. If only 10% to 15% of your sales are at list price, it is pretty clear your customers recognize the fake discounts. Unfortunately, it is not […]
Recently I had a conversation with a friend (let’s call her Helen) who wanted to buy a new iPhone, however she was frustrated that the iPhone 8 offers little in enhancements from her current iPhone 6. She was contemplating ordering an iPhone X. When I asked why Helen needed a new phone at all, she […]
Higher price means higher quality in consumers’ minds: Study | Big News Network
Washington D.C [USA], July 24 (ANI): Why are we willing to pay much more for a six pack of craft beer, a locally produced bottle of wine or a regional brand item, often choosing them over national brands? It’s because when people prefer to ‘buy local,’ they more frequently base their decisions on price as […]
Disneyland ticket prices have skyrocketed more than 5,000% since the Anaheim theme park opened in 1955, according to a new study. A study from the United Kingdom-based Play Like Mum mommy blog looked at the rising costs of admission tickets over the past six decades at Disney theme parks around the world. Disneyland admission cost […]
Job: Principle Pricing Analyst | Worldpay
Description Principle Pricing Analyst The Company Worldpay is a global payments leader powering international commerce with deep fintech expertise and a shared passion for our customers. Whether in-store, online, or on a mobile device, we process over 40 billion transactions annually and offer more than 300 payment methods supporting 126 currencies across 146 countries. It’s […]
Considering a Subscription Model? Avoid These Rookie Mistakes | IndustryWeek
The subscription economy is taking business by storm. Entire industries have moved to subscription-based pricing, leaving behind some of the slow movers but also giving new life to companies that were struggling. Some talk about the end of ownership and the start of usership. It is a real revolution. Industrial companies have lately been getting […]
Statistics for Dynamic Pricing of Theatre | Towards Data Science
Summary: Dynamic pricing is the practice of adjusting a price to meet its demand, or market value. Given the difficulty of selling 100% of a performance’s tickets and that any unsold tickets immediately expire once a performance starts, dynamic pricing shows promise of lowering ticket prices while increasing revenue for shows. Included are several statistical […]
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