In this Brainfluence episode, we explore pricing psychology with Leigh Caldwell, a seasoned behavioral economist and pricing strategist. Leigh joins us to shed light on the true essence of pricing – it's more than just numbers; it's about crafting positive customer experiences in a profitable way. In our discussion, we delve into the relationship between cost and value, and how businesses often undervalue their offerings.
Leigh reveals effective ways to appeal to diverse customer segments through varied pricing strategies. We also dive into the psychology behind discounts and negotiations, examining the trade-offs customers make for a good deal. We also discuss supermarket strategies. We'll analyze how stores like HEB, Trader Joe's and Aldi use product combinations to catch consumer attention and convey value. Leigh introduces innovative concepts in behavioral economics, including "subjectivity as a factor of production" and the "system three approach," which expands on the conventional intuitive versus conscious decision-making models. We even discuss the curious concept of a "chocolate teapot" - a concept familiar in the U.K. but that might mystify our U.S. audience.
Show notes and resources: https://www.rogerdooley.com/leigh-caldwell-pricing/ The Psychology of Price: https://amzn.to/3Uivbt9 The Irrational Agency: https://irrationalagency.com/
Leigh Caldwell is a behavioral economist and pricing expert with 10+ years of experience in applying behavioural science commercially. He is the creator of the System 3 methodology, author of The Psychology of Price, and a frequent speaker at academic and industry conferences.