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word. When a company tries to figure out the price it can achieve, only the subjective (perceived) value of the customer matters.
Hermann Simon • Confessions of the Pricing Man: How Price Affects Everything
one useful strategy Amazon has found is to undercut their competitors on popular products but actually raise the prices on uncommon products, such as by discounting bestsellers while jacking up prices on obscure books. The idea is that most people will just search for the most common products (which will end up being cheaper on Amazon), so they’ll
... See moreAditya Agashe • Swipe to Unlock: The Primer on Technology and Business Strategy (Fast Forward Your Product Career: The Two Books Required to Land Any PM Job)
As we’ve seen, language changes how we value goods, services, and experiences of all kinds.
Dan Ariely • Dollars and Sense
In both cases, we don’t look at the true, absolute value presented to us: $20 for a five-minute drive. Instead, we consider $20 compared to $60 and to $1,060 respectively. We compare the relative advantage of $40 shoes to $60 shoes, and decide the money is worth the time. Then we compare the relative advantage of a $1,040 patio set to a $1,060 one
... See moreDan Ariely • Dollars and Sense
prices are creeping into all realms of our lives.
Hermann Simon • Confessions of the Pricing Man: How Price Affects Everything
The idea is that the average consumer will not notice if the new package they buy has slightly fewer units or fewer ounces than the package they used to buy, as long as the price is the same.