OnDemand WTP Pricing Research

The Old-School Pricing Technique That Still Works | Kopitiam Bot

According to some source, Amazon is slowly phasing out list prices because they’re arbitrarily high. In most cases, the “discount” price is the real price, so why bother pretending otherwise?

It’s hard to believe that Amazon would take such a radical step unless they were fairly certain that across-the-board discounting was no longer driving higher sales. Which means they’ve got some research behind the strategy.

Amazon aside, the past few years have seen a sharp increase in scientific research into pricing strategies. Some scientists are even using brain scans to track how people make buying decisions!

Given all the renewed attention to the study of prices, it’s likely that a number of time-honored pricing strategies will gradually fall by the wayside.

There is one pricing strategy, however, that’s turning out to be amazingly resilient, even though it’s both painfully obvious and faintly annoying: ending your price with the numeral “9.”

The classic study of this phenomenon, published in the journal Quantitative Marketing and Economics, encompassed three field studies where different price-points were offered.

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The Old-School Pricing Technique That Still Works – Kopitiam Bot.

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