Tag: price anchoring

The SeaChange in Pricing Research…. | Medium

The SeaChange in Pricing Research…. | Medium

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 […]

Used car sales skyrocket as high prices drive down new car sales | KVAL

Used car sales skyrocket as high prices drive down new car sales | KVAL

If you think new cars are getting too expensive, you’re certainly not alone. According to a report Monday by The Wall Street Journal, the gap between the price of the average new and used vehicle is as wide as it’s been in five years, pushing buyers away from dealerships and towards used car lots and […]

Anchoring should be a mainstay of pricing research | Research Live

Anchoring should be a mainstay of pricing research | Research Live

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 […]

Pricer’s Points: The Burt Lancaster School of Pricing | Mark Ritson

Pricer’s Points: The Burt Lancaster School of Pricing | Mark Ritson

So negotiations began. For six months, Puttnam tried every tactic he knew to reduce the $2 million price tag. Each time, Lancaster reconfirmed his desire to make the film and pointed to the only stumbling block: his $2 million fee. With only days left before filming began, the Local Hero production team admitted defeat and […]

Pricer’s Points: Pricing market research is not always about the price | Bryan Belanger

Pricer’s Points: Pricing market research is not always about the price | Bryan Belanger

What we’ve found over the years doing this work is that pricing in the ICT space is often more art than science, and that customer anecdotes about pricing are often as valuable and instructive to pricing strategy as the market pricing data sets produced. Our approach to pricing research is rooted in interviews with representatives […]

Will Dynamic Pricing Change Sales of Car Parts? | PYMNTS.com

Will Dynamic Pricing Change Sales of Car Parts? | PYMNTS.com

Dynamic pricing has produced more than $1 billion in revenue for automakers over the last decade, according to a report from Reuters this week (June 3). The account of that earnings boost not only reveals how the process works, but raises questions about how the use of pricing software might change the automotive and insurance […]

Software and stealth: how carmakers hike spare parts prices | Reuters

Software and stealth: how carmakers hike spare parts prices | Reuters

LONDON/PARIS (Reuters) – Carmakers including Renault, Jaguar Land Rover and Peugeot have boosted revenues by over $1 billion in the past decade by using sophisticated pricing software, according to sales presentations prepared by the software vendor, Accenture, and other documents filed in a court case. The software works, Accenture told prospective clients, by identifying which […]

Product Gems: Car Sales 101: Anchoring | Product Gems

Product Gems: Car Sales 101: Anchoring | Product Gems

Very few buyers expect to pay the full advertised price for a new car. Walking into the showroom you’re confident of negotiating a good deal, remembering that one time you haggled for some souvenirs in a bazaar on holiday. You see the price sticker in the car window. Of course, you’re not going to pay […]

Pricer’s Points: Pricing research – when to use it and how to improve it | Nicola Warrington

Pricer’s Points: Pricing research – when to use it and how to improve it | Nicola Warrington

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 […]

The Super Effective Pricing Strategy You May Be Overlooking | Inc.com

The Super Effective Pricing Strategy You May Be Overlooking | Inc.com

There was a time when pricing was almost a consequence of other decisions made by a company. Companies used to figure out their cost and tack on a few pennies. Today, companies reverse engineer their solutions based on a price point. In his book Priceless: The Myth of Fair Value, MIT professor William Poundstone shared a discovery that rocked the […]