Sales Strategy

Research-Backed Pricing Strategies That Make an Impact March 13, 2023 (0 comments)

New York, NY--Pricing strategies are critical for businesses but can be complex and challenging. To help set prices effectively, businesses should consider research-based strategies that have stood the test. An article explores ten pricing strategies based on consumer behavior science.

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One strategy involves limiting choices, as too many options can lead to "analysis paralysis." When two similar products have the same price, consumers are less likely to buy them compared to when their prices are slightly different. Consumers are more likely to defer their decision when the products are identical.

Another strategy is price anchoring, where placing premium products next to standard options creates a clearer sense of value for customers. This helps the less expensive options seem like a bargain in comparison. Weber's law is also applicable when considering price hikes, as it shows that customers are stirred to respond at around a 10% increase.

Reducing pain points, such as bundling items purchased in tandem, reframing the product's value, and appealing to utility or pleasure, can help increase post-purchase satisfaction and retention. Using the word "free" is also influential in attracting customers. Finally, prices ending in nine are effective and outsell lower prices for the same product.

Pricing strategies require deliberate thought and consideration rather than just "winging it." Using research-based pricing strategies can provide inspiration and insight into how to set prices effectively.

Learn more about the pricing strategies in this article.