Unveil The Psychological Effect Of Price

Why do free chocolates make us crazy? Why are Broadway theatres?

But it is obvious that in modern society, many physical products and service products and consumption behaviors are seriously against the so-called price laws, which deviate from the cost of goods, but consumers are not complaining or even willing to accept them.

This phenomenon is particularly prominent and obvious in the sale of luxury goods.

In addition, the 9 mantissa and integer phenomena of price are also common and the same as commodity pricing.

The relationship between psychology and price

The above phenomenon reveals that the price of commodities is not necessarily priced like textbooks, and other factors are even more important than cost and utility.

Among them, psychological factors have become the key.

When commodities are no longer simply used for daily consumption, their additional functions, functions and values are constantly increasing, such as psychological hints, wealth hints, status symbols, etc.

The consumer psychology of avoiding disadvantages also makes consumers tend to buy goods with festive prices.

Luxury goods reflect the wealth, culture, status and dignity of consumers through high prices.

Therefore, psychological factors have become one of the important factors of commodity pricing. Psychological pricing has become an important method of pricing.

"Priceless" is a good book that makes a comprehensive and practical interpretation of the relationship between psychology and price.

On the whole, this is a Book between academic and practical. It includes academic psychological experiments, theories and deductions, and popular psychological analysis.

This book is mainly concerned with the price psychology of buyers and sellers. It mainly analyzes the irrational states of buyers' price psychology, analyzes the strange phenomena in the pricing of various commodities, and reveals the normal "abnormal phenomena" in commodity pricing.

Therefore, this book can be regarded as a practical book integrating price science, economics, sociology, psychology and behavior.

As the author of the book recommends, "if you are Sales&Marketing, priceless" is a practical guide that you can't afford.

If you are a smart consumer and read the whole book, you can avoid one price trap after another.

However, although some of the viewpoints and conclusions of this book are highly practical, verifying and practical, their academic logic and theoretical argumentation are still insufficient. Therefore, they need to be verified scientifically and theoretically.

The law of pricing

In the book, the author summarizes some "rules" or strategies of commodity pricing, but not all of them consider or involve psychological factors. That is to say, psychology is not the only factor affecting and determining prices.

In the first part, "the psychological secret behind price", we put forward the phenomena of price not mind, price effect, preference reversal, anchoring effect, and our obtuse price.

It focuses on the influence of psychological factors on the pricing of merchants.

However, it is worth pointing out that the psychological effect of price is also restricted by many conditions.

In fact, if the psychological pricing of commodities can be unimpeded, the market economy will lose basic rules and rules.

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In reality, the psychological pricing of commodities generally depends on several points: first, consumers need to have higher capacity to pay, that is, they do not need to pay less than the price.

The price elasticity of commodities reveals that most consumers are more sensitive to changes in the prices of goods belonging to daily consumption and large consumption, but not sensitive to luxuries. Two, consumers lack sufficient market price information due to time and experience, and the market information is asymmetric, and goods are purchased for lack of price comparison.

These are actually not much related to purchase psychology.

In other words, if the market information is fully disclosed, consumers can easily get information, including price information, then the price of merchants can hardly be effective.

With the current popularity of online shopping, goods and their prices have been fully disclosed and compared, and buying behavior has become increasingly rational. In fact, it has reflected the impact of market information on commodities and their prices.

There is another case which deserves attention and attention.

Many family women are familiar with the products and prices of the major markets. They are very sensitive to price changes and are not puzzled by price tricks. The so-called psychological pricing method basically does not work for them.

This reflects the fact that the price and market of commodities are not determined by the price game of the merchants, but also disprove the shortcomings of the psychological pricing method.

Price "fraud"

In the second part of the "magic price swindle", the author analyzes the "price scam" used by businessmen.

For example, the magic number 9, "free and low price", the price must be set higher than the market price, the secret of discount coupons.

In all price strategies or scams, there are psychological suggestion pricing method, "child care" method, "package" method and gift method.

In fact, it is to seize the consumption concept of consumers, such as greedy for petty gain, pursuit of good fortune, pursuit of status and prestige, and use different price strategies to catch consumers and even plunge them into a cyclic consumption chain.

In the third part of the "magic waving price", the market and competitors, consumers and pricing strategies are comprehensively analyzed. The pricing strategies, such as preempting the price, giving the attention of the opponents, selling the currency illusion, gender difference pricing, "fool theory" and outrage theory, are put forward.

Obviously, the price has the effect of "magic wand", and businesses can achieve extraordinary results when they are used properly.

The author uses the Super Bowl ticket price, seaside villa, house price and beer price difference to analyze the above price strategy.

The basic conclusion is that the price of a commodity does not necessarily depend on its utility, or even far from its utility, but rather on its consumption psychology and pricing strategy.

The "right" commodity price can be completely irrelevant to its utility, but it can flourish in the market.

What is not sold affects what is being sold.

However, the diversity of consumers, the diversity of products, the asymmetry of market information and psychological factors always exist, and the tricks or tricks of price will not come to an end.

In this regard, the author elaborates on different examples.

For example, "one of the important ideas of pricing theory is that what is not sold can affect what is being sold".

The case is, "in the famous Williams and Suo Na Ma kitchen chain, which is famous for its high quality and high price, there is a magic toaster, which sells for $279.

Later, they added a slightly larger model, priced at $429, which resulted in a poor sale of the model.

"Do you want to have a bigger toaster instead of a boarding school?" does this point to two points? First, the $429 toaster actually acts as a "child care" role, boosting another sales of bread machines: the second is that consumers still have rational characteristics, and the practicality and price of products still affect their buying behavior.

Again, the author explains the wonders of the pricing strategy by the Super Bowl ticket price in the major league baseball.

The grand League sells 500 Super Bowl tickets every year at "coupon value". The first Super Bowl ticket is only 10 dollars. The forty-second Super Bowl tickets cost 700 dollars, but tickets on sale of second-hand tickets are worth 2000-6000 dollars.

In addition, there are factors such as free tickets, TV broadcast fees, advertising revenue, fans' irrational reactions to tickets and their prices.

Similarly, many unique products, such as works of art, important sports events, singers' concerts and so on, reflect this complex price phenomenon.

Of course, in general, if you are the provider of goods, that is, the pricing person, reading this book can grasp the pricing skills, make more money.

If you are a consumer, that is, the recipient of price, reading this book can know the tricks of price and spend less money.