Smart Marketing with Price Psychology
Getting people to buy something is hard. So many things can happen in a customer’s mind that factor into the purchase decision. This course turns to solid scientific research in psychology to uncover tricks and hacks you can use to increase sales by massaging one fundamental element: the price.
What You’ll Learn
In this course we consider six major strategies you can use to your marketing pursuits by using real data from behavioral science. Within each one are many individual things that make prices more appealing, totaling more than 30 psychological price effects that will strengthen your offline and online marketing campaigns.
Picking the Right Price: How to choose the number that will appeal most to consumers without changing your profit level.
Presenting Your Price: How to write and say your price in the most appealing ways possible.
Framing Your Price: How to communicate your price more effectively once the price is set.
Using Context to Your Advantage: How to present differently priced products together in ways that maximize profits.
Smart Discounting Practices: How to present your promotions in ways that make the deal irresistible.
Handling Extra Charges: How to most effectively present your prices when there are unavoidable additional fees to communicate.
As a bonus, I also include a full PDF notes document that summarizes all the major techniques we go over because when you are designing your marketing and advertising strategies, you don’t always have time to review a full 3 hour video course.
Why Learn From Me?
As an award-winning psychology instructor, I have experience translating research in the field and presenting it in an engaging, understandable way. My students routinely evaluate my courses highly and comment on the passion I have for social psychology. I hope you can join this group of satisfied students and learn something new about yourself and psychology.
So take this course now and understand the science of pricing and what it can do for your business and marketing efforts!
Introduction to Price Psychology
Welcome to the course! In this quick intro, I want to introduce you to the idea of pricing psychology and walk you though a few of the things you should think about as you move through this course.
Just a quick note from me about navigating the Udemy interface!
Picking the Number
You probably already know that $7.99 looks less expensive than $8.00 even though there's not much difference. In our first lecture, you'll gain an appreciation for this effect and see how good psychological research can show that it actually is effective to set your prices in this way. By the end of this lesson, you'll have a good idea of how this course is structured, what we'll be talking about, and how research in psychology gives us what we want to know.
This lecture features one reason why 9-endings have such power and how you can maximize that power.
This lesson considers when you might avoid using odd-ending prices.
When thinking about your pricing strategy, it's worth considering the audience to whom you're marketing. This video will give one suggestion for how to think about this audience-matching strategy.
Ever wonder whether it makes any difference to price something at $1.95 vs. $1.99? This lesson explains the difference.
When it comes to big number prices, consider precision.
This one may seem a little nuts, but the research has shown the power of connecting a price to an individual person.
Let's do a quick quiz over the first section of this course. I'll give you a couple different prices, and you decide which one's more effective.
Presenting the Price Visually and Auditorily
This lesson features something you should keep in mind when you're presenting your price in audio.
Is it better to leave cents in your price or is it better to leave them off? This lesson explains when and why.
The difference between $1000 and $1,000 might be bigger than you think.
Something as simple as the spatial dimensions that you emphasize can signal clear information about your product's value.
Let's see how much you retained from Section 2.
Framing Your Price Appropriately
In this lesson, I share the "Pennies-a-Day" framing effect and discuss the specific ways in which you should try implementing it.
New research has begun to suggest a new framing effect, and it has to do with the units of currency you emphasize.
The right framing can also enhance some of the variables we've already discussed. This research gives you a guide for most effectively using 9-ending prices.
There's a certain factor that you want to emphasize, and it's not the monetary savings.
Let's see how much you've picked up in this section of the course with a quick quiz.
Using Context to Your Advantage
In this lesson, we discuss how offering a set of products or services can be helpful.
We expand on the compromise effect and look at other ways in which you can design your full product line to maximize profits.
Very simply--how should you order your products when you present them?
By applying the anchoring effect, you can nudge people to pay more for your product and/or buy more of it.
Time for a quick quiz! See how well you can see context effects in action.
Smart Discounting Practices
In this lesson, we'll talk about whether you should list your sale price first or the original price.
Here we'll go over several factors that maximize ease of discount computation and talk about why that matters.
When you run your promotion, should you say "30% off!" or "$30 off!"?
In this lesson, we'll discuss whether your sale price should be printed in larger or smaller print, compared to the original.
You might not believe it, but the words you have near the sale price can influence perceptions of that price.
Is it better to have your sale price printed close to or far away from the original price? I'll show you the answer in this lesson.
Is it better to have the sale price and original price next to each other horizontally or to have one on top of the other? We'll see in this lesson how the critical determinant is the subtle point you're trying to make.
We talked about the left digit effect way back when, but it's back, and it has something of value to say about discounting.
If you can't implement the left digit strategies from the last lesson, research on the right digit effect could have something useful to suggest.
Quiz time! I'll show you a few ways that you could display your promotion, and you decide which one is the strongest psychologically.
How to Handle Additional Charges
In this lesson, I introduce the concept of "partitioned pricing."
In this lesson, I'll talk about how the surcharge should be presented visually.
When does partitioned pricing work best? It depends on the surcharge amount.
Here we'll talk about what to do when you have to have many additional fees.
Although the research has some evidence of the benefits of either percentage- or dollar-based surcharges, I share my skepticism.
Finally, if you can't present a partitioned price, how do you best present the total cost?
Last quiz! Put your knowledge of partitioned pricing to the test.
Use these downloadable notes to remember everything we've learned in this course!