3 Pricing Strategies to Make Your Products Look Cheaper
One of the reasons someone doesn’t buy a product is because of the price. Fortunately, marketing expert Nick Kolenda is obsessed with psychology and has researched it. Kolenda explains that every concept we learn builds on previously learned concepts.
When marketers understand this well, they will be able to influence consumers’ perceptions of prices. Here are 3 pricing strategy concepts that according to Kolenda can influence consumer perceptions when looking at prices.
Concept 1: Size
One of the first concepts that babies learn is that large objects are considered more important than smaller objects. This concept can be seen for example when children receive gifts – a gift with a larger size will be considered more valuable, and vice versa.
As we grow older, we understand that not all large objects are more valuable than smaller objects. However, the concepts we learned as babies – big objects are more important than small objects – don’t just disappear. These ideas are deeply ingrained in our minds and can still influence our perceptions in many ways, including abstract concepts such as the price of a product.
According to Kolenda, we still apply the same concept when looking at prices on gadget screens. A study shows that prices that have a smaller size, for example, a smaller font size, are considered cheaper than those with a larger font size.
Concept 2: Weight
When we were little, adults often picked us up or carried us. Once we grow up, they stop. When packing groceries in a trolley or the trunk of a car, we put heavier items at the bottom. From this, our brain forms a simple concept – light objects rising/rising, heavy objects falling/falling. Although simple, this concept can bend our perceptions in many ways – even in food photos.
Kolenda refers to research from Ohio State University and the University of Miami, which shows that when images of food are placed at the bottom of the package, we assume that the food is heavier. When the image is placed on top, we believe that the food is lighter. This also applies to product prices. On the price tag, the closer the number is to the bottom, we tend to perceive the product’s price as heavier and more expensive.
Concept 3: Perception of Proximity
As humans, we learn that items that are grouped usually have similarities. They may be of a similar shape or color. This is also true when we look at several pictures that are close together online, we tend to connect the images, and eventually create a new perception.
See how fast-food restaurants dress up beef burgers in their commercials. We can see crispy lettuce and wet tomato which looks fresh. This aims to create the perception that all the ingredients of the burger are fresh, including the bread and meat used.
Kolenda describes researchers taking pictures of skates and testing some of the text placed next to the images to see if the text can make roller skates appear cheaper.
Some texts emphasize “low friction”, while others emphasize “high performance”. The researchers found that the price of roller skates appeared lower when it appeared next to text that emphasized “low friction” because people combined the concept of “low” with price.
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