address price scientifically not intuitively A study at Yale university, reported in Huffpost in 2015, considered the impact of equivalent and differential pricing. Two groups of subjects were offered two packets of gum on the following basis: Group one two brands priced at 63c each Group two brand one – 62c brand two – 64c […]

address price scientifically not intuitively A study at Yale university, reported in Huffpost in 2015, considered the impact of equivalent and differential pricing. Two groups of subjects were offered two packets of gum on the following basis: Group one two brands priced at 63c each Group two brand one – 62c brand two – 64c The research specifically addressed the percentage of customers who made a purchase. The findings were as follows: Group 1 – 46% Group 2 – 77% This research has been replicated and demonstrates that consumers like a price comparison and will be more likely to buy when there is a comparison. This phenomenon has been embraced by Apple, which has traditionally offered three price options for each product category in the knowledge that most customers (around 60%) will opt for the mid-priced option. Research even suggests that variable pricing often impacts more on a consumer’s propensity…