Chapter
Changing the Comparison Set for Your Product
33:22 - 38:22 (04:59)
By changing the comparison set for your product, you can change people's willingness to pay by orders of magnitude, according to Daniel Kahneman. For example, if Nespresso powder was sold in a big bag of coffee like Cafe Direct, the perceived cost would have been significantly different.
Clips
In this podcast, the host and guest discuss five cognitive biases that are important to know.
33:22 - 34:28 (01:05)
Summary
In this podcast, the host and guest discuss five cognitive biases that are important to know. One of these biases is price relativity, which suggests that people don't have a fixed concept of value and instead use a simpler calculation to decide if something is good value.
ChapterChanging the Comparison Set for Your Product
Episode#091 - Richard Shotton - Some Very Important Effects In Advertising
PodcastModern Wisdom
By changing the comparison set for a product, marketers can significantly alter consumers' willingness to pay.
34:28 - 38:22 (03:53)
Summary
By changing the comparison set for a product, marketers can significantly alter consumers' willingness to pay. Examples include selling Nespresso powder in bags of coffee or comparing prices to gins.