“What a bargain!”
As consumers, we don’t have a fixed conception of good or bad value. Instead our perception of value is relative, not absolute and therefore the idea of a bargain is created in this way. By changing a brand’s comparison set, you can successfully shift a consumer’s willingness to pay for a product. This behavioural bias is known as price relativity.
Price relativity helps to explain how brands such as Nespresso and Seedlip have managed to expand their audience, even though they continue to charge 5-10x more than their competitors. But how can you make this work in practice with your own product or service?
Listen to Richard and Will delve into the significance of price relativity, and how it can be behaviorally applied to your brand.
Don’t forget to subscribe for more!