When it comes to pricing options, how different should the prices be?
Should your most expensive option be a little bit pricier than the middle option, or a lot?
Should your cheapest option be super low, or closer to the middle?
In this video, behavioural expert Bri Williams shares how to price your product options to influence customers to buy.
More about Just Do This: www.briwilliams.com/about-just-do-this
Once the dominant streaming service, Netflix is haemorrhaging subscribers, losing market share to the likes of Disney Plus, YouTube and Amazon Prime.
To shore up revenue, they have rolled the dice on a new ad supported "Basic" option.
Is this a good move?
That depends on the behaviour they are seeking to displace. Presumably this is an acquisition rather than retention strategy.
That means they are seeking to win customers from streaming competitors,...
Are you part of a distributed team? Perhaps you manage one?
It's new language, isn't it, distributed team? It means that colleagues who work together, don't physically work together. They're scattered around the state, the country, the world.
It's not quite the same as "remote work", where you and your colleagues might work remotely from your office some or all the time, but there is still a central office.
For distributed teams, there is no central office so everyone works remotely.
What's one of the biggest findings from behavioural science that people resist?
That terrifies them the most?
Sequencing prices from high to low.
It's much more common to see menus and websites listing goods from low to high.
Well, that's a problem because you're wasting every sale.
Researchers Suk, Lee and Lichtenstein, for example, found way back in 2011 that listing the most expensive beer first increased the average paid by 4% compared to listing in descending order.
So I know it might...
Ending your price with “9” is a tidbit of pricing psychology that has entrenched itself in business folklore.
Why? Because $1999 seems better than $2000, and $12.99 better than $13.
But why does it seem better?
It may have a lot to do with the direction the digit is pointing. You see, 9 points to the left, as does 1, 2, 3, 4 and 7.
5 and 6 are right-facing whereas 0 and 8 are centered.
This digit-directionality (Coulter, 2007) is yet another consideration when it...