Pricing consultancy – Pricing psychology
Pricing consultants > Pricing psychology meets marketing for better business performance
In the academic world, psychology and marketing have traditionally sat far apart. Psychologists, as social scientists work by examining the world, developing theories, testing them through controlled experiments, and furthering scientific understanding. Marketers try to understand how the world works for business gain. Quite different agendas.
In marketing customer insight and understanding makes a powerful difference in marketing planning. We’re hungry for knowledge and understanding, because we want to find ways to use it for business advantage.
In recent years psychology and marketing have met more frequently through the emerging discipline of behavioural economics. There have been plenty of studies, research papers and bestselling books published – what’s new is working out how to apply it. That’s where we can help you.
Brands we all know about and read about have been building this new found knowledge into how they operate.
From Apple’s clever use of relative pricing, pricepoint anchors and stage managed events. To Amazon’s deliberate use of customer endorsement. To carefully structured pricing approaches used in mobile phones, in fashion and luxury goods, in subscription businesses and elsewhere – the pricing psychology being applied clearly works. Some of the promotional methods aren’t new – but understanding the psychology behind how and why they work is.
Using principles proven by academic studies is low risk – because we know more and more about how human brains work. It’s easy to test – so you can check before you change things. Plus it’s full of reference points, case studies and illustrations from other brands and other markets. So there’s plenty of examples of what’s already working for other businesses.
Bestselling authors who have written about this new discipline include Robert Cialdini, Dan Ariely, Malcolm Gladwell, nobel prize winner Daniel Kahneman, William Poundstone, Richard Thaler & Cass Sunstein, Ori and Rom Brafman. Between them they’ve sold millions of books worldwide spreading the news about the power of these new ways of thinking.
If you’d like to find out more, click here to browse through a selection of FREE pricing case studies showcasing big differences in pricing effectiveness.
Or click below to see short filmclips which showcase applying principles from psychology to marketing (5 filmclips, 12 minutes).