May 11, 2022
In General Discussions
Can be a powerful means of influencing customer choice. Can be a powerful means of maximizing profits. Decoy pricing can help customers make decisions faster and easier. Challenges: Counterproductive effect if customer realizes that decoy pricing is being applied. Example decoy pricing: Armani – the secret strategy to boost T-shirt sales decoy pricing When you enter an Armani store, you notice that T-shirts are sold for $150. In another place near the T-shirt is a T-shirt for $75, just behind a pair of $450 pants. The $75 T-shirt seems like a good deal now, it's an Armani T-shirt after all. Armani knows that few people will buy the $150 T-shirt. However, this lure option makes the $75 T-shirt a more attractive option for the majority of customers. 5. Forced Scar City Forced scarcity is Use Cases Industry Email List about releasing (exclusive) products in a limited edition. Demand is often greater than supply. In some cases, not every interested party can buy the product, but the Use Cases Industry Email List buyers have to meet certain conditions. Advantages: A limited list can make the offer more valuable to customers. In many cases, a company can charge a higher Use Cases Industry Email List price for a limited supply. It can trigger customers to make a purchase faster. It can contribute to strengthening Use Cases Industry Email List the brand. Regularly issuing limited releases can make customers curious, so they keep an eye on what's on offer. This in turn can lead to various commercial opportunities. Challenges: To successfully apply forced scarcity, a company often needs to have a large Use Cases Industry Email List group of fans. Due to the scarcity, not everyone can purchase the supply, which can lead to disappointment. It can make regular versions less valuable to customers. It can attract Use Cases Industry Email List merchants who want to sell the exclusive product for a higher price immediately after purchase.