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How to Find the Perfect Price Using Consumer Psychology | Inc.com

During a recent talk, Yammer’s director of analytics gave tips on determining prices according to not-so-predictable human behavior.

However, the offering wasn’t a failure at all. In the end–because customers consequently perceived the online and print deal to be such a good value–two thirds of The Economist‘s subscribers switched to the print and online package.

There are a number of variables that go into determining the prices for online products, services, and games. And while it’s necessary to consider what Economics 101 teaches about pricing strategy, you need to marry those concepts with considerations about how people behave in the real world, Fishman said.

“In thinking about the lifetime value, you really have to nail it. But nail every component. Think really deeply about the consumer psychology,” he said.

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How to Find the Perfect Price Using Consumer Psychology.