pricing strategies

Ever thought about human psychology’s role in increasing your product's value? Eric Graham shares how this plays an important part in video persuasion and marketing. Subscribe for more interviews with Big Kahunas https://pxlme.me/SubscribeNow

Video Notes:

Understanding psychology and how the human brain works are key players in engineering your persuasion techniques and pricing strategies in marketing.

Eric Graham identifies 3 Powerful Cognitive Biases that have massive effects on consumer’s decision making:

Sunk Cost Bias occurs when a consumer perseveres with something, when they are given prompts or reminders of how far they have made it. This is a result of wanting to ensure their investment is justified after all the time, money, effort they have put in and the identity they transferred into the product. cognitive bias

Asymmetric Decoy Pricing is a technique that alters the consumer’s preference between two products. By placing a third option, a decoy, consumers would infer one of the other two options as more attractive.

Framing Effect has a lot to do with the success of your Asymmetric Decoy Pricing strategy. The way a product is positioned as more beneficial or cost-effective can guide consumers to the direction of the product you want to drive the bulk of the sales to..