How do consumers make purchasing decisions? This is the core question any revenue and pricing managers need to answer. Of course, rational choice only plays a partial role in this – behavioral science has become ever more important in recent years. Behavioral pricing continues to be a hot topic within the pricing field. However, there has been little progress in moving the topic beyond individual anecdotes of how for example The Economist increased sales via bundling or how Amazon increased sales with free shipping. While such examples make interesting stories, it is not obvious, how pricing managers can best apply behavioral insights in their daily work.
At buynomics, we have developed a SaaS pricing solution based on our Virtual Customer technology that allows users to optimize their offer and pricing considering behavioral effects. For example, it answers questions such as: How to set prices in a good-better-best offer considering customers’ preference for the middle option, or how sales are affected if one offer is highlighted or recommended?
Tune in to our webinar today and learn more about the key behavioral effects in pricing and revenue management and how organizations can leverage concepts like "preference for the middle option", "default nudging" or "endowment effects" to boost their profits!