Module 12 – Price Positioning and Psychological Pricing

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

• 8 easy to follow video tutorials introduce price positioning, behavioural approaches to pricing, and pricing efficiency
• Examples of pricing case studies used in behavioural psychology
• Tips to improve the way you present your pricing
• How to improve the efficiency of your pricing strategies across the operation including leakage through process, negotiation and operational challenges
• ‘Test your Understanding’ with our Knowledge Check
• Need some additional support? Become a member of Revenue Academy and join a live session here, and get some great discounts!

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

• Want to understand how price positioning strategies work, their advantages and disadvantages
• Are aware of how consumers respond to different pricing messages and want to learn how you can apply this in your pricing
• Want to ensure that your pricing strategy is as efficient as possible with minimal revenue leakage
• Are an aspiring revenue manager within a hotel who wants to make a valuable contribution to optimise incoming revenues
• A revenue professional that wants to fine tune your skills