Glossary

What is confirmation bias? Confirmation bias refers to the tendency to look for or interpret information in a way consistent with one's beliefs.

What is competitive pricing? Competitive pricing is the process of selecting the optimal price points for a product or service, taking into account competitors' pricing behavior.

What is the time pressure bias? Time pressure causes a higher propensity of decision-makers to shift from logical and rational processes to intuitive processes.

What is the Power of Free concept? The Power of Free concept, or the “Zero Price Effect,” describes how people tend to choose a product if it includes a free element even though it has little ...

What is social desirability bias? Social desirability bias reflects a respondent's propensity to answer in a way perceived as socially acceptable rather than the respondent's genuine opinion or ...

What are price thresholds? A price threshold is a pricing strategy that sets the price of a product or service at a level intended to match customers' psychological willingness to make a purchase. It ...

What are price anchors? A price anchor sets a buyer's expectation at a certain price level. They are often used to increase the perceived value of the goods offered.

What is the compromise effect? The compromise effect, or the "preference for the middle option," describes a buyer's tendency to choose a middle product more often than the inherent utility would ...

What is the endowment effect? 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 ...