3 Psychological Techniques That Can Increase the Price of Your Product

3 Psychological Techniques That Can Increase the Price of Your Product – It's no secret that a successful marketer uses psychological techniques in creating his sales.

This is of course because man is considered a very rational being in weighing every choice he makes logically.

However, several studies have confirmed that emotions play a strong role in influencing purchasing decisions.

As Gerald Zaltman writes in his book, How Consumers Think, 95 percent of purchasing decisions happen in the subconscious.

One of the psychological factors that is very influential is the price determination factor. Pricing serves to attract attention and emotions from potential buyers.

In this case if you want to increase the price of the product, here are four psychological techniques in pricing that can have a striking effect on consumers' purchasing behavior.

3 Psychological Techniques That Can Increase the Price of Your Product

1. Feed Effect: Introduce a "Useless" Price

"Feed effect" is an unusual term in marketing. Here, through an article on LinkedIn by conversion expert Jeremy Smith, exemplified by the price of popcorn commonly offered in theaters.

Usually there will be two prices raised, namely medium popcorn of IDR 35 thousand and large popcorn of IDR 50 thousand. Most people will choose medium-sized popcorn at a price of IDR 35 thousand.

The reason is simple, you will rationalize that you don't really need a big popcorn. However, purchasing decisions may change as the third option is introduced, namely:

• Small popcorn – IDR 25 thousand
• Medium popcorn – IDR 35 thousand
• Big popcorn – IDR 40 thousand

Which one looks more attractive now? In the second scenario, most people choose the most expensive popcorn.

When these people were asked the reason for their choice, they said that the difference between medium and large was only Rp. 5 thousand. Who wouldn't want such an offer?

Gregory Ciotti, in his article on the Kissmetrics blog, regarding the same topic, explains what is going on here.

He wrote: "The price is in the middle, while it seems 'useless' because it does not provide any value, but it is useful to get customers to go from 'bargain finders' to 'value finders'."

In psychology, the actions played are called cognitive biases. That is the tendency of the human mind in making purchasing decisions.

Therefore, to apply this effect to the price of your own product, you need to identify the product whose sales you want to increase. Then create two more price points and apply the feed effect.

2. Bundling or Merging Several Goods

Have you ever gotten a music CD when buying a food package at KFC? Or have you ever got a bonus of accessories or anti-scratch when buying the latest mobile phone?

Both of these things mean that the company is merging or commonly called bundling. The bundling technique requires some careful thinking and strategic thinking, as customers will make cheaper purchases if the incorporation is done incorrectly.

So what is the key to determining the right merge? The key is to try to combine items without reducing their value. Think clearly about what bundling can attract potential customers.

3. Give Consumers a "Deal" by Using a Reference Price

This technique may be the most widely applied psychological technique. The basis is that consumers unconsciously generate a reference price with which they rate your price equally high or low.

By bringing up the reference price, you can trigger a more receptive price perception. For example, have you ever seen that there are jeans priced at IDR 200 thousand (imagine this price crossed out and followed): IDR 150 thousand.

In this way, the old price of IDR 200 thousand has been lingering in the buyer's mind, so IDR 150 thousand looks like something that is already cheap and very attractive to buy.

To apply this technique to the price of your own product, set the price you want to have in the buyer's mind, and position it as the first price that the buyer sees or hears.

Well, those were 3 psychological techniques that can increase the price of your product in the eyes of potential consumers. By doing psychological techniques in pricing, it is certain that your sales will increase quickly.

Make sure you have sufficient availability of goods when the existing demand starts to rise drastically, because the availability of ordinary goods is also an important factor that will also influence purchasing decisions.

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