Pricing Products and Services On the Web

Pete Prestipino — Mon, 14 Jul 2008 13:03:00 GMT

Pricing decisions are an important part of Web success. Many marketers however focus more on product development or promotion, as pricing is quite often left for the suits to decide. Giving attention to pricing is just as important as the attention given to more recognizable marketing activities, so understanding the various pricing models is crucial.

This article originally appeared in Website Magazine's Web Success Weekly

Use Precise Pricing To Entice Buyers

Administrator — Fri, 28 Mar 2008 15:08:00 GMT

I'm not sure when I first heard the price point "$19.95," but something about that combination of letters impressed me - perhaps it was the fluidity the sound those numbers made and the sense of attainability it provided. Apparently, I'm not alone.

via NPR: Researchers at Cornell University say they've discovered something strange about the way consumers absorb price information. They say when the price of an item is in a round number, people perceive it as higher than an odd number. In other words, people think a $3,000 car is more expensive than one priced at $3,129.50. The finding has implications for people trying to sell their homes.

It's easy to see how this can be applied to anything at all - especially the Web. So what's the lesson? Don't round off those numbers - get creative with your pricing and test out various pricing schemas with A/B testing to ensure maximum sales.

'Net Features : product pricing

Pricing Products and Services On the Web

Use Precise Pricing To Entice Buyers