Re:The cup-of-coffee pricing fallacy
by QuantumGood on Monday February 03, 2020 @09:51AM
(#22224569)
> "...anchor against another online service."
So this isn't really against the idea, only against using coffee in the analogy.
One of the underlying principles, "Present costs as small pieces, and rewards as a large sum" is important, but there are many other relevant approaches, e.g. free trial, money-back guarantee, etc., etc. Effective marketing usually combines approaches. Analogizing to other small costs can NOT be the whole pricing strategy.
So this isn't really against the idea, only against using coffee in the analogy.
One of the underlying principles, "Present costs as small pieces, and rewards as a large sum" is important, but there are many other relevant approaches, e.g. free trial, money-back guarantee, etc., etc. Effective marketing usually combines approaches. Analogizing to other small costs can NOT be the whole pricing strategy.