The Power of Rank: Behavioural Insights into Pricing
Posted: 01/10/2013
Pricing is an inevitable and vital commercial decision. So how do you establish the best price? Using a behavioural approach, called Price lab, which recreates a facsimile of a shopper’s purchasing environment, we examine this question. We show how, in a car insurance renewal task, customers are powerfully influenced by various factors, including price rank. These insights have important implications for determining the optimal pricing strategy; designing out-bound sales activity, handling in-bound enquiries, and so forth.