Pricing and the Psychology of Consumption

Pricing Label

This summary was proudly brought to you by Maria…

Pricing affects consumption: People are more likely to consume a product when they are aware of its cost.

Common pricing practices such as advance sales, season tickets, price bundling all serve to mask how much a buyer has spent on a given product – decreasing the likelihood that the buyer will use it. A customer who doesn’t use a product is unlikely to buy that product again.

Continue reading