£5.99	   £7.99	  0	  50	  100	  Total	  revenue:	  £619	  
How	  should	  this	  shop	  increase	  its	  profits?	  a)  Decrease	  the	  price	  of	  the	  £5.99	  boCle?	  b)  Decre...
0	  50	  100	  £5.99	   £7.99	  Total	  revenue:	  £809	  	  31%	  up!	  £14.99	  0	  50	  100	  Total	  revenue:	  £619	  
£3600	  £2150	  
Time	  given	  up	  to	  be	  here	   Cost	  of	  travel	  Cost	  of	  food	  Benefits	  of	  new	  knowledge	  Day	  out	 ...
£234	  
£14.99	  
₹47,291,002,181	  
Price	  is	  an	  arficial	  neatener	  
•  The	  same	  sofa	  that	  I’d	  pay	  £1199	  for	  •  I’ll	  pay	  £59.99	  a	  month	  for	  36	  months	  	  •  A	 ...
£6/boCle	  £60/boCle	  
Cogni&ve	  economics	  
THE 7 PRINCIPLES OF PRICINGPricing should be based on thevalue to the customer,not the cost to you11 copy of PowerPoint – ...
THE 7 PRINCIPLES OF PRICINGPrices should be tangible,so your customers can see whatthey get for what they pay2App vs. webs...
THE 7 PRINCIPLES OF PRICINGThe positioning of the productmakes a huge difference to howmuch people will pay for it
THE 7 PRINCIPLES OF PRICINGPrices should be comparable(on terms that you control)3How much is something really worth?Make ...
THE 7 PRINCIPLES OF PRICINGIf you want to change yourprices, you mustreframe the product4What’s included?
THE 7 PRINCIPLES OF PRICINGPrice differentiation is thekey enabler of profit5Horses for courses – different people have di...
THE 7 PRINCIPLES OF PRICINGPricing communicationshapes the customer’sperception of value6There’s no absolute value – the w...
THE 7 PRINCIPLES OF PRICINGYou must be prepared tolose some sales in orderto increase profits7Accept that some of your cus...
The	  seven	  principles	  1.  Pricing	  should	  be	  based	  on	  value,	  not	  cost	  2.  Prices	  should	  be	  tangi...
Usually	  £14.99	  Today	  £12.72	  Signed	  £12.71	  Free	  guide	  to	  behavioural	  economics	  
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych
Nächste SlideShare
Wird geladen in …5
×

Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych

4.631 Aufrufe

Veröffentlicht am

A company's choice of pricing can create a psychological response in its customers, but how can businesses choose the best pricing tactics to create a positive response, maximising customer satisfaction and profits. “Psychology of Price” author, Leigh Caldwell uses a nuanced understanding of psychology to unlock the potential of behavioural economics that can provide new models for business.

0 Kommentare
5 Gefällt mir
Statistik
Notizen
  • Als Erste(r) kommentieren

Keine Downloads
Aufrufe
Aufrufe insgesamt
4.631
Auf SlideShare
0
Aus Einbettungen
0
Anzahl an Einbettungen
2.068
Aktionen
Geteilt
0
Downloads
0
Kommentare
0
Gefällt mir
5
Einbettungen 0
Keine Einbettungen

Keine Notizen für die Folie

Pricing Psychology: Behavioural Economics and New Economic Models by Leigh Caldwell at Chinwag Psych

  1. 1. £5.99   £7.99  0  50  100  Total  revenue:  £619  
  2. 2. How  should  this  shop  increase  its  profits?  a)  Decrease  the  price  of  the  £5.99  boCle?  b)  Decrease  the  price  of  the  £7.99  boCle?  c)  Increase  both  prices?  d)  Round  them  up  to  £6  and  £8?  e)  Offer  10%  off  if  you  buy  three?  f)  Something  else?  
  3. 3. 0  50  100  £5.99   £7.99  Total  revenue:  £809    31%  up!  £14.99  0  50  100  Total  revenue:  £619  
  4. 4. £3600  £2150  
  5. 5. Time  given  up  to  be  here   Cost  of  travel  Cost  of  food  Benefits  of  new  knowledge  Day  out  of  the  office  Fun  talks  People  I  might  meet  -­‐  networking  Boring  talks  Possibility  of  TSB  funding  Could  find  a  new  job  SiZng  in  a  chair  all  day  Hot  women  Hot  men  £199  
  6. 6. £234  
  7. 7. £14.99  
  8. 8. ₹47,291,002,181  
  9. 9. Price  is  an  arficial  neatener  
  10. 10. •  The  same  sofa  that  I’d  pay  £1199  for  •  I’ll  pay  £59.99  a  month  for  36  months    •  A  total  of  £2159.64  
  11. 11. £6/boCle  £60/boCle  
  12. 12. Cogni&ve  economics  
  13. 13. THE 7 PRINCIPLES OF PRICINGPricing should be based on thevalue to the customer,not the cost to you11 copy of PowerPoint – what is it worth?
  14. 14. THE 7 PRINCIPLES OF PRICINGPrices should be tangible,so your customers can see whatthey get for what they pay2App vs. website: “what am I getting?”A bird in the hand etc…
  15. 15. THE 7 PRINCIPLES OF PRICINGThe positioning of the productmakes a huge difference to howmuch people will pay for it
  16. 16. THE 7 PRINCIPLES OF PRICINGPrices should be comparable(on terms that you control)3How much is something really worth?Make your product seem like a good deal bychoosing the right comparison point.Nescafe  instant  £2.49  Lavazza  coffee  £3.49  Starbucks    la<e  £2.55  vs.   vs.  
  17. 17. THE 7 PRINCIPLES OF PRICINGIf you want to change yourprices, you mustreframe the product4What’s included?
  18. 18. THE 7 PRINCIPLES OF PRICINGPrice differentiation is thekey enabler of profit5Horses for courses – different people have differentbudgets.To maximise profits, have something for everyoneand let people tell you what they want.
  19. 19. THE 7 PRINCIPLES OF PRICINGPricing communicationshapes the customer’sperception of value6There’s no absolute value – the way you talk aboutthe product and its price will set expectations
  20. 20. THE 7 PRINCIPLES OF PRICINGYou must be prepared tolose some sales in orderto increase profits7Accept that some of your customers won‘t come with you….but its still worth it.
  21. 21. The  seven  principles  1.  Pricing  should  be  based  on  value,  not  cost  2.  Prices  should  be  tangible  3.  Prices  should  be  comparable    4.  To  change  your  prices,  you  must  reframe  5.  Price  differenaon  is  the  key  enabler  of  profit  6.  Pricing  communicaon  shapes  the  customer’s  percepon  of  value  7.  You  must  be  prepared  to  lose  some  sales    
  22. 22. Usually  £14.99  Today  £12.72  Signed  £12.71  Free  guide  to  behavioural  economics  

×