More Psychological Strategies in Pricing Human psychology plays a big role in how people perceive prices and pricing has a big impact in how buying decisions are made.  For instance, pricing influences the perception of value.  People often associate higher … Continue reading →

Psychological Strategies in Pricing

Retailers use psychological sales triggers to influence customers into buying products. And these strategies are also used to help cross-sell or upsell products or services. These techniques include such obvious efforts as discounts or promotions, as well as product placement, suggestive selling, social proof and scarcity. There are also psychological strategies involving pricing, such as charm pricing, loss leaders, penetration pricing, price shelfs, price cliffs, and more. Even if people are aware of these psychological strategies, they still work?

Why is that? Continue reading →

Word Count: 1,310Estimated Read Time: 5 Min. Last week, you went to Ikea to buy some inexpensive magazine holders to file the last dozen issues of Harvard Business Review piled on the floor next to your desk.  You walked into … Continue reading →

As the saying goes, necessity is the mother of invention. Innovation is about solving problems. Companies that are innovative focus on the needs of their customers and find ways to meet those needs in new and novel ways. That is what Uri Levine, founder of Waze, meant in his book “Fall in Love with the Problem, Not the Solution.” That’s how most companies start out: solving an existing problem. And some, like Steve Jobs at Apple, go a step further and foresee a problem even before the customer realizes they have it. But the bottom line is that innovation is really just good, old-fashioned problem-solving. If you want to bring something truly innovative to market, focus on the problem.

Here’s how. Continue reading →