Decoy Pricing

The phenomenon whereby in the choice between two alternatives there is a greater consumer preference for one of these two options, as a result of the addition of a third decoy option. Benefits: 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 Tonga B2B List  you enter an Armani store, you notice that T-shirts are sold for $150.

Forced Scar City

Close to the t-shirt is a $75 t-shirt just behind a $450 pair of 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 Tonga B2B List  customers. 5. Forced Scar City Forced scarcity is 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 buyers have to meet certain conditions. Benefits: A limited list can make the offer more valuable to customers. In many cases, a company can charge a higher price for a limited supply.

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 successfully apply forced

This in turn can lead to various commercial opportunities. Challenges: To  Tonga B2B List successfully apply forced scarcity, a company often needs to have a large 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 merchants who want to sell the exclusive product for a higher price immediately after purchase. Example forced scarcity: Supreme – from a small skateboard shop to an established fashion brand forced scarcity Photo by Wikimedia Commons under the Creative Commons License . The clothing brand Supreme sells many products in limited edition.

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