Effective pricing strategy to invest customer psychology

ByDaremoshiranai

If you are shopping at supermarkets and home appliance mass merchandisers, you can see the price setting "199 yen" or "2980 yen" regardless of region. The effect of psychology based on consumer's perception and behavior is applied to those prices, but from the person who runs the sales business to the time of sending personal items to the auction, it seems to be useful in a wide range " Psychology "is summarized with illustrations.

Psychology of Pricing: A Gigantic List of Strategies
http://www.nickkolenda.com/psychological-pricing-strategies/

◆ 1: Determine the price
Consider various factors in determining the price of the productConjoint analysisAlthough there is a research method called "cognition" "behavior" in psychology, we can also apply the research result of psychology to the appropriate price of the product.

Over the past two to 30 years, the sales industry has adopted pricing like "$ 9.99" or "$ 95". This is a method of price determination that has been used for many years because it is accompanied by actual results, but it is not good just to discount 1 cents. For example, a 1 cents discount such as "3.80 dollar → 3.79 dollars" can not be expected so much, but so that the digits on the left change like "$ 20 → 19.99 dollars" or "$ 3.00 dollar → 2.99 dollars" It is effective to subtract 1 cents.

In the case of "$ 3.00 to $ 2.99", when the price is seen, the brain unconsciously encodes the most significant digit (the leftmost digit) and recognizes it as "cheaper than $ 3". Even with a discount of only 1 cents, it is possible to create the maximum effect by visually displaying the highest digit to be changed.


For "27.82 dollars" and "28.16 dollars" it is obvious that the former is lower price, but pronunciation in English "says syllables more" 27.82 dollars ". We know that humans unknowingly encode in the brain unexpectedly when reading prices, and as more syllables are, more resources are needed, so the longer price feels higher than the actual price. Therefore, when hesitating to pricing, it is better to put it in the mouth and make it easy to say.


◆ 2: Affect customer's perception
When selling products online, you need to consider shipping costs in addition to the price. Depending on the site, it may be displayed as "Price included shipping fee", but it is better to display shipping fee and handling fee separately. This is because when customers calculate the total of divided product prices and shipping costs, customers can be fixed relative to the product price, making it easier to compare with other products.(PDF file)Experiments conducted at auction site "eBay" in 2006Then, when listing several same music CDs and comparing them by "shipping fee included" to "shipping fee included", it turned out that the tendency was that the CD for shipping fee tended to have a higher price.


For example, if you sell an online course of $ 499, it's very effective to have an option of $ 99 (5 dollars total) rather than lump-sum payment ($ 495 total). Although I only discounted 4 dollars, there is only a small price setting for installment, and the price of "99 dollars" remains under the customer's unconsciousness, so if you compare it with another company with the same pricing, a $ 99 option It is said that one is felt cheap.


You can expect the same effect as above even just by dividing "cost of 14.99 dollars a month" into "daily cost" like "49 cents a day". You can also get the same result by comparing the commodity cost per day like the "one cup of daily coffee" and the cost which it takes every day.


The price position of the price tag can influence the customer's visual perception. Even at the same price we know that it is felt cheaper to make it "lower left" than from the upper side of the price tag, because this is associated with "upper class goods" as it is in the higher place.


The font size of price tags may affect people's perception. By lowering the price of the product you want to sell cheaply, it is possible to give the recognition of "small price" literally. In addition, we know that narrower letters and letters give a lower price impression.


By removing the comma of price as much as possible and displaying it, it is possible to maximize the effect of the character spacing mentioned above. This is related to the "number of syllables" mentioned above, it is 10 syllables if "1,499 (One-thousand four hundred and ninety-nine)", but shortening to 5 syllables when "1499 (Fourteen ninety-nine)" You can expect the effect that you can do.


When selling at an auction site, etc., it is best to write the lowest bid price in advance. "The lowest winning bid price: 23.47 dollars, bid price: from 15 dollars", the initial value can start with a high price, and as a result the seller will likely have a higher price than the lowest price. This tends to feel that the amount presented earlier is cheaper than the actual price, so the customer thinks "not losing" even if you give a higher price than the lowest bid price.


◆ 3: Promote willingness to purchase
When a person buys something by paying money, he resembles pain sensation "(PDF file)Pain to payIt is said that you actually feel it. Pain will occur at the moment when money is removed from the hand by payment or when I feel that I have consumed money afterwards. Uber revolutionized the taxi industry by eliminating the timing of these payments, but there are several ways in which anyone can easily promote purchasing willingness by alleviating the customer's "pain to pay" with a little ingenuity There is.

For example, the following is the restaurant menu,(PDF file)Eliminate the notation of currency symbolEven just it can be expected to reduce the pain you pay. However, this method can only be used in places like restaurants where dollar payments can be clarified if they are dollars. If you lose credibility of business by losing currency notation, you need to give priority to keeping authenticity.


Even in "bundle pack" which sells multiple products as a set, it is possible to reduce customer's "pain to pay". However, it is important to add a single word that understands that it is "practical" when purchasing at the same time, as it is necessary to set the relevant products as a set, rather than summarizing the combined products. For exampleAccording to research in 2010In selling the set of blender and lamp, we sold the same price with two kinds of wording "Let's make attractive cocktails" and "Make healthy shake!" When comparing with lamp It seems that the former who can imagine the relevance to sell better.


Also, when making bundle packs, the combination of cheap products and high products is a matter of gravity.(PDF file)According to research in 2012, When a group of examinees chose a gift for "home gym" and "one year member ticket for sports gym", the choices of subjects were divided into about half. When another group got "home gym + fitness DVD" and "sports gym 1 year members ticket", the probability of choosing the former with DVD was reduced to 35%. A cheap product can damage the value of a high product.


Systems such as gift cards and casino chips became common because the system that customers do not have to pay cash each time is convenient. For example, by preparing a payment method that does not use cash, such as charging a ticket for ten dollars that can be used only by your own company to the customer's account, it is possible to reduce the pain paid by customers and motivate purchasing . However, even if gifts that can be used anywhere are given, good effects can not be expected.


Also, it is better not to be able to associate "cash" when making a payable account. For example, if you charge 10 dollars, you need to devise such as converting it to "coin" worth $ 11.


◆ 4: Price strategy to maximize revenue
Once products are bought, it is not the end, it is necessary to create long-term revenue by connecting to the acquisition of repeaters. As business continues, the timing of price increases due to inflation and soaring material costs will surely come, but most consumers have not even considered reasonable reasons for raising prices. Therefore, by adopting a price strategy for continuing to sell products, we can continue to maximize revenue.

The only way to prevent customers' negative reactions by sudden price increases is to do price increases on a regular basis. The product which was 80 dollars from the 1st to the 2nd year suddenly rises to 85 dollars in the 3rd year, and gradually raising the price step by step will have less impact on customers.


Even if you raise the price little by little you will not notice the customer, especially in the food industry consumers are very severe to product price fluctuations. Therefore, if you can not raise rates little by little, you can avoid price increases by reducing the quantity of physical products. The point that miniaturization of products is to be able to increase profit without taking negative attention is to point out, and when we decide to downsize the product, we will downsize the three-dimensional size "height, width, length" It is said that it is better.


"Dynamic pricing (price fluctuation setting)" whose price fluctuates according to customers' situation is an attractive method that can maximize the profit of the selling side, but it is also said that it will lower long-term sales power . Dynamic pricing is effective if price adjustment based on supply and demand is effective, but since it will be notoriously reputed if price fluctuates according to customer's ability to pay, if you introduce dynamic pricing, be careful Is required.