Having worked in Pricing earlier, one thing that always catches my eye is how brands use price discrimination
It is essentially a way of ‘How can I identify people who are willing to pay more’.
A good example of this is the one highlighted by the behavioral economist in ‘The Undercover Economist’
“Every single product on the menu above costs Starbucks almost the same to product, down to a few odd pence.
By charging wildly different prices for products that largely have the same cost, Starbucks is able to smoke out customers who are less sensitive about the price”
I came across this membership model on Farnam Street‘s website last evening. And it made me smile.
The transparency displayed highlighting why they charge different prices for the same content is quite authentic, if not unique
Have you noticed behavioral economics used in products you use?
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#behavioraleconomics
#pricing
#reviewswithranjani