Psychology of Pricing helps you to find answers to questions like
What do you can expect?
Dr. Markus Husemann-Kopetzky is a best-selling author, passionate researcher and experienced pricing manager. He knows both sides, academia and business. Markus is a senior research fellow at the University of Paderborn, Germany, where he graduated with a PhD in economics with research on behavioral pricing while publishing a best-selling book on the subject in his home country. In his professional career, he has held consulting and management positions in the financial services and retail industries for more than 12 years.
I became early infected by a deep interest for psychological pricing. How people react to prices and how seemingly unrelated triggers change this reaction has always fascinated me.
During my academic research on behavioral pricing I have come across numerous psychological effects in literally hundreds of academic papers that serve two purposes: First, I early recognized how small changes to the way prices were presented can have a tremendous impact on customers’ perception and a company’s profitability. Second, I always have fun insights to share over dinner with family and friends who hardly believed how “other people” unconsciously behaved.
Long discussions with marketing managers and business students laid the foundation for my first book on psychological pricing (Preispsychologie) that got published by Springer in 2015. I am humbled to find it is still bestselling on this subject in Germany.
As we speak, I am associated with my alma mater as an active senior researcher and a member of the Society of Consumer Psychology, the Association for Consumer Research, and the Academy for Marketing Science. My most recent research was published in the Journal of Marketing Behavior and picked up by national newspapers. The latter happens when your research involves two popular soccer teams in Germany.
For more than ten years I have worked in management and consulting roles in retail and financial services, and led the sales management practice at an international consulting firm. My career revolved around projects that aimed at reducing costs, increasing revenues, or understanding why either was falling behind expectations.
A decade of experience taught me three surprising lessons:
- Systematic pricing management has a ten times larger impact on customer satisfaction, customer lifetime value and, thus, profitability than the same time and effort invested in cost management.
- However, surprisingly few companies have a conscious, thought-through approach to pricing. This impression is not limited to large corporations, I found this is also to be the case for small and medium-sized companies, for start-ups and for entrepreneurs.
- Pricing receives limited attention from senior mangement, and those managers who are responsible for pricing at any organization are usually buried in everyday work and rarely find time to dive deeper into a new topic to “sharpen their pricing axe”.
Therefore, I decided to turn my expertise into a concise book with a particularly high ratio of “actionable insights per page” on a pricing perspective that is impactful, but largely neglected: The Handbook on the Psychology of Pricing.
With my wonderful wife and two amazing daughters I live close to Munich, Germany. You usually find us somewhere in the nature hiking or picnicking in forests or on mountains.
What does my personal life have to do with pricing?
Not much – except for the fact that my loved ones are priceless.