Last week, we discussed that gift buyers become more loyal to the brand they present as a gift (see Nugget #11: Gift givers are a gift.). Gift buyers become more loyal – but what about their price sensitivity? Imagine you are buying a gift for your friend – let us say new headphones. You are…
DetailsXmas is around the corner. Imagine you are buying the perfect gift – let us say a lush beauty product – for your loved ones. How do you feel towards the brand? Now, assume you would have bought the same product for yourself and personal use. How do you think about the brand in this…
DetailsSome time ago you learned about a psychological pricing effect called “price-quality inference”. This phenomenon very much means: if something has a higher price, people associate a higher quality with it, which in turn justifies a higher price. For example – what do you think? Is a bottle of wine for $2.99 of the same…
DetailsImagine you are releasing a new product in the future. You promote the launch of a new physical product, such as a tablet PC. You plan to allow your customers to preorder those products and you think about promoting them prior to release to increase demand and to collect more preorders. It is six weeks…
DetailsImagine you are a marketing manager and about to decide when to launch your price promotions next year. You know that 2020 starts with the U.S. Super Bowl in early February and excites the sports world with the European Soccer Cup in mid-June followed by the Summer Olympics in Japan. Should you target or avoid…
DetailsImagine you are running a furniture store. A young couple who recently moved in their first apartment enters your store. How should you arrange your assortment? You can arrange your assortment by similar products (“substitute-based”) and group together tables, cupboards, closets, beds, and chairs. Or, you organize your assortment by your customers’ purchase goals (“complement-based”)…
DetailsImagine you are selling durable goods such as ice skaters, washing machines, or diamond necklaces. Now, you think about how to let customers use these products before finally buying them. You come up with three options: sell them right away without testing, rent them out at a fee or borrow them for free. By the…
DetailsImagine you are selling a basic product that also comes with an upgrade option: A 23-inch monitor that could be upgraded to a 27-inch model. A journey in a basic train that takes 10 hours could be upgraded to a premium train, which is only a 8 hour ride. A newspaper subscription available via web…
DetailsBoth in the previous nuggets and in the introductory guide to psychological pricing, we looked into some classic studies. Today, we kick-off a series of brand-new research: Studies that have been published this year. Imagine, you are selling chocolate and you sell two different boxes – a larger one and a smaller one. You would…
DetailsI am a cheesecake addict. Now it is public. Sometime ago I have spent few days in Copenhagen with my family (if you have never been to Copenhagen, definitely go; if you already have been to Copenhagen, you know why). Wandering a tiny street we came across a small bakery solely selling cheesecake. Nothing else.…
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