Slides for a workshop for startups on understanding how emotions and perception play a big part in successful pricing.

1. The emotional
science of pricing
Topi Järvinen
Nestholma Venture Accelerator

2. The emotional
science of pricing

3. 95 percent of all
cognition occurs in the
subconscious mind.
Gerald Zaltman
Harvard Business School

4. 95% of purchase decisions
are made without
concious awareness

5. If price is perceived to
be too high, it causes
physical pain
Confidential5

6. Pain-relievers
for buyers
Confidential6
• Perceived fairness
• Bundling
(hard to assess)
• Credit

7. Pricing is pain
management
Confidential7
Discounts have to
have pain associated
with them

8. 499€ vs. 500€?
Confidential8

9. Use pricing that
seems more precise.
It’s perceived to be
more credible
Confidential9
499€
501€
500€

10. Guide the customer with decoy pricing
The Economist pricing experiment
Confidential10
16
0
84
68
32
N=100
Ariely: Predictably Irrational
Subscriptions (test #1) Subscriptions (test #2)No of times
the option
was chosen
No of times
the option
was chosen

11. Decoy effect in action
Confidential11
7,99
Basic
9,99
Pro
99,99
Enterprise

12. Anchor
pricing
Confidential12
•Establish a baseline
•After a $599 iPhone,
a $299 iPhone seems
like a steal

13. Our brains aren’t good at judging
absolute values, but they are
always ready to compare values
and benefits.
Roger Dooley
Brainfluence
Confidential13

14. Align your pricing to fit your
overall value proposition
• Choose the choices carefully!
• Too many or too little may
turn your customers away
vs.

15. Contact
Topi Järvinen
+358 40 754 3131
topi.jarvinen@nestholma.com
http://www.nestholma.com