January 2005
Intermediate to advanced
232 pages
5h 35m
English
Content preview from Smarter Pricing: How to capture more value in your market
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Seeing something else pricey loosens the wallet
Going further, two academics, Joseph Nunes and Peter Boatwright (2004) believe that non-related or incidental prices can act as reference points that shape perceptions and willingness to pay. Their studies demonstrate that unrelated prices encountered during the purchase process can effect what people will pay. Believe it or not, if customers see an unrelated high price just before the transaction they are willing to pay more!
The proof? They analyzed six years of sales data from one of the best-known car auctioneers in the USA, selecting classic car auctions where buyers are normally equipped with historical prices and the industry ‘blue guide’ to prices. Between 1995 and 2000, 1,477 classic automobiles ...
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