OnDemand WTP Pricing Research

How To Set The Right Price Every Time | Neuromarketing

Exactly how to price products is a big challenge for marketers, but new research provides valuable direction in this complex decision-making process.

It isn’t just “big picture” pricing, like establishing margins and an overall price point, that bedevils marketers. There is plenty of research that shows $499.30 is psychologically more distant from $500 than the minuscule real difference. Unfortunately, the advice from science is sometimes conflicting.

The Power of Precision

Multiple studies show that precise prices (involving odd numbers and decimals) are more believable. In Precise Pricing Pays Off, I describe research showing that both $4988 and $5012 caused subjects to estimate a higher real value for a product than for the same item priced at $5000.

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How To Set The Right Price Every Time.