Definition: Confirmation bias describes the tendency to look for, or interpret information in a way that is consistent with one’s existing beliefs.
Definition: Competitive pricing is the process of selecting the optimal price points for a product or service, considering the pricing behavior of competitors.
Definition: Time pressure causes a higher propensity of decision makers to shift from logical and rational processes to intuitive processes.
Definition: The Power of Free or “Zero Price Effect” describes the phenomenon that people tend to choose a product if it includes a free element even though it has little inherent value.
Definition: Social desirability bias reflects respondents' propensity to answer what is perceived as socially acceptable, rather than the respondent’s true opinion or behavior.
Definition: Buyers perceive prices below price thresholds significantly lower than they actually are. Studies find that the use of price thresholds is widespread: 30-65% of prices in the US end in ...
Definition: A price anchor sets a buyer's expectation at a certain price level. This is an often-used tactic to increase the perceived value of the good offered.
Definition: The preference for the middle option, or "compromise effect", describes a buyer's tendency to choose a middle product more often than the inherent utility would suggest.
Definition: The endowment effect describes buyers' tendency to value a good higher once they own it. Therefore, people demand more money for giving up an object than they would be willing to pay for ...
Definition: The default nudging effect describes the predictable altering of user behavior through positive reinforcement
.svg){kind=logo}