Issue 22 of The Psychology of Pricing
Congratulations, you have made it to the final lesson! We hope that looking at value, pricing and promotions through the lens of behavioral economics has helped you think about your own products in a new way.
In this lesson, we’ll summarize the three biggest takeaways from this course.
But first, try to come up with them on your own…
Need a refresher? Here you go:
- Deciding how much something is worth doesn’t happen in a vacuum. Consumers compare every product to similar products and services. How you position your product in the market is key to how it will be perceived.
- Transparency of effort is important to determining value, increasing trust and liking. When consumers see and understand the effort that goes into a product or service, they like it more.
- While discounts can increase sales in the short term, there is a link between price and perceived quality of the product or service. Discounting can hurt the perception of value, impacting sales negatively in the long term.
We hope that, throughout this course, you’ve kept in mind how different psychological concepts can be applied to improve not just your company’s bottom line, but also the experience consumers have when using your product. When you do this, you are more likely to succeed at building a product that users really value.
Finally, we want to thank you for taking this course! Now it’s time for you to take these ideas and apply them to your work! Also, if you liked this course you will enjoy our first course Hacking Human Nature for Good.