What will you learn?
This module introduces the most common price positioning strategies and their advantage and disadvantages. We take a behind-the-scenes look at behavioural psychology and how this applies to pricing
Prospect theory and how the three elements of the theory impact how consumers make purchasing decisions, plus some of the tactics used including Price Anchoring, Reference Pricing and how Decoy Pricing works including the concepts of attraction and compromise
You will further explore other biases in pricing presentation including Framing, the Isolation effect, Urgency and Scarcity. Finally we review how pricing strategies can leak revenue, how to identify this and what you can do to improve overall Price efficiency.
What will you get
Content and Topics
1) Introduction
2) Topic One Four Price Positioning Strategies
3) Topic 2 Prospect Theory and how pricing impacts how we make decisions
4) Topic 3 Price Anchoring and Reference Pricing
5) Topic 4 Decoy Pricing
6) Topic 5 Presenting Prices – Framing, the Isolation effect, Urgency and Scarcity
7) Topic 6 Analysing and Managing Pricing Efficiency
8) Summary
9) Knowledge check – 10 questions
This is for you if you
