Does Price Matter?
By tsufit on Feb 24, 2009 in Advertising, Branding, Marketing, Positioning, Publicity, Sales, Uncategorized, Why We Buy
This video is 20 minutes long, well worth it, but if you don’t have time to listen, I’ll cut to the chase below.
Price DOES matter. Not in the way you think. With everyone cutting back prices ’cause of the recession, you might want to consider doubling yours. According to author/journalist Benjamin Wallace, research shows that in taste tests not only do people say they prefer bottles of wine labelled with higher price tags, their brain activity reinforces their preferences, registering higher levels of pleasure, while tasting identical bottles of wine, identical except for the all important price tag. Thanks to Alex Mandossian for the heads up.
Thanks for sharing that video, it’s a great reminder that price is part of the story that we tell ourselves – it’s intricately woven in our expectations of the product or service.
Bill Gammell | Feb 24, 2009 | Reply
On a related note, I recently read an article that said you should stay away from price cutting as a competitive strategy. I’m afraid I can’t recall where it was now, but one quote I remember vividly:
“Don’t cut your prices to try to stay competitive, because there will always be somebody who’s willing to go broke faster than you.”
Roy Jacobsen | Feb 26, 2009 | Reply