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Smart Marketing with Price Psychology

Improve online marketing success with fundamental psychological pricing research for your business and marketing
Instructor:
Andrew Luttrell, Ph.D.
6,050 students enrolled
English [Auto-generated]
Price your product or service to maximize revenue
Understand how consumers perceive and think about prices
Run promotions that make people think they're getting an amazing deal
Think about your full set of products and services in ways that maximize earnings

Getting people to buy something is hard. So many things can happen in a customer’s mind that factor into the purchase decision. This course turns to solid scientific research in psychology to uncover tricks and hacks you can use to increase sales by massaging one fundamental element: the price.

What You’ll Learn

In this course we consider six major strategies you can use to your marketing pursuits by using real data from price psychology. Within each one are many individual things that make prices more appealing, totaling more than 30 psychological price effects that will strengthen your offline and online marketing campaigns.

  1. Picking the Right Price: How to choose the number that will appeal most to consumers without changing your profit level.
  2. Presenting Your Price: How to write and say your price in the most appealing ways possible.
  3. Framing Your Price: How to communicate your price more effectively once the price is set.
  4. Using Context to Your Advantage: How to present differently priced products together in ways that maximize profits.
  5. Smart Discounting Practices: How to present your promotions in ways that make the deal irresistible.
  6. Handling Extra Charges: How to most effectively present your prices when there are unavoidable additional fees to communicate.

As a bonus, I also include a full PDF notes document that summarizes all the major techniques we go over because when you are designing your marketing and advertising strategies, you don’t always have time to review a full 3 hour video course.

Why Learn From Me?

As an award-winning psychology instructor, I have experience translating research in the field and presenting it in an engaging, understandable way. My students routinely evaluate my courses highly and comment on the passion I have for social psychology. I hope you can join this group of satisfied students and learn something new about yourself and psychology.

So take this course now and understand the science of pricing and what it can do for your business and marketing efforts!

Introduction to Price Psychology

1
Introduction

Welcome to the course! In this quick intro, I want to introduce you to the idea of pricing psychology and walk you though a few of the things you should think about as you move through this course.

2
A Quick Word About Reviews

Just a quick note from me about navigating the Udemy interface!

Picking the Number

1
The 99 Effect

You probably already know that $7.99 looks less expensive than $8.00 even though there's not much difference. In our first lecture, you'll gain an appreciation for this effect and see how good psychological research can show that it actually is effective to set your prices in this way. By the end of this lesson, you'll have a good idea of how this course is structured, what we'll be talking about, and how research in psychology gives us what we want to know.

2
The Left Digit Effect

This lecture features one reason why 9-endings have such power and how you can maximize that power.

3
The Round-Luxury Effect

This lesson considers when you might avoid using odd-ending prices.

4
EXAMPLE: Wall Street Journal Interview
5
Appealing to Price-Conscious Consumers

When thinking about your pricing strategy, it's worth considering the audience to whom you're marketing. This video will give one suggestion for how to think about this audience-matching strategy.

6
95 vs 99: Which is Better and When?

Ever wonder whether it makes any difference to price something at $1.95 vs. $1.99? This lesson explains the difference.

7
The Precision Effect

When it comes to big number prices, consider precision.

8
Ego Pricing

This one may seem a little nuts, but the research has shown the power of connecting a price to an individual person.

9
Picking the Price QUIZ

Let's do a quick quiz over the first section of this course. I'll give you a couple different prices, and you decide which one's more effective.

Presenting the Price Visually and Auditorily

1
The Syllables Effect

This lesson features something you should keep in mind when you're presenting your price in audio.

2
Do Cents Make Sense?

Is it better to leave cents in your price or is it better to leave them off? This lesson explains when and why.

3
The Comma Effect

The difference between $1000 and $1,000 might be bigger than you think.

4
The Verticality Effect

Something as simple as the spatial dimensions that you emphasize can signal clear information about your product's value.

5
The Male-Red Effect
6
Presenting the Price QUIZ

Let's see how much you retained from Section 2.

Framing Your Price Appropriately

1
The Pennies-a-Day Strategy

In this lesson, I share the "Pennies-a-Day" framing effect and discuss the specific ways in which you should try implementing it.

2
The Spare Change Effect

New research has begun to suggest a new framing effect, and it has to do with the units of currency you emphasize.

3
Gain-Framings and 9-Ending Prices

The right framing can also enhance some of the variables we've already discussed. This research gives you a guide for most effectively using 9-ending prices.

4
Time Framing

There's a certain factor that you want to emphasize, and it's not the monetary savings.

5
Framing QUIZ

Let's see how much you've picked up in this section of the course with a quick quiz.

Using Context to Your Advantage

1
The Compromise Effect

In this lesson, we discuss how offering a set of products or services can be helpful.

2
The Decoy Effect

We expand on the compromise effect and look at other ways in which you can design your full product line to maximize profits.

3
BONUS RESOURCE: Dan Ariely Discusses the Decoy Effect
4
The Descending Order Effect

Very simply--how should you order your products when you present them?

5
The Anchoring Effect

By applying the anchoring effect, you can nudge people to pay more for your product and/or buy more of it.

6
Context Effects QUIZ

Time for a quick quiz! See how well you can see context effects in action.

Smart Discounting Practices

1
The Subtraction Principle

In this lesson, we'll talk about whether you should list your sale price first or the original price.

2
The Ease of Computation Principle

Here we'll go over several factors that maximize ease of discount computation and talk about why that matters.

3
Percentage-Based Discounts

When you run your promotion, should you say "30% off!" or "$30 off!"?

4
The Relative Size Effect

In this lesson, we'll discuss whether your sale price should be printed in larger or smaller print, compared to the original.

5
The Verbal Matching Effect

You might not believe it, but the words you have near the sale price can influence perceptions of that price.

6
The Relative Distance Effect

Is it better to have your sale price printed close to or far away from the original price? I'll show you the answer in this lesson.

7
Vertical vs. Horizontal Positioning: When To Use Which

Is it better to have the sale price and original price next to each other horizontally or to have one on top of the other? We'll see in this lesson how the critical determinant is the subtle point you're trying to make.

8
The Left Digit Effect (Returns!)

We talked about the left digit effect way back when, but it's back, and it has something of value to say about discounting.

9
The Right Digit Effect

If you can't implement the left digit strategies from the last lesson, research on the right digit effect could have something useful to suggest.

10
Putting Limits on the Offer
11
Smart Discounting QUIZ

Quiz time! I'll show you a few ways that you could display your promotion, and you decide which one is the strongest psychologically.

How to Handle Additional Charges

1
Introduction to Partitioned Pricing

In this lesson, I introduce the concept of "partitioned pricing."

2
The Role of Visual Surcharge Size

In this lesson, I'll talk about how the surcharge should be presented visually.

3
The Role of Surcharge Amount

When does partitioned pricing work best? It depends on the surcharge amount.

4
The Surcharge Consolidation Effect

Here we'll talk about what to do when you have to have many additional fees.

5
Should Surcharges Be Presented as Percentages?

Although the research has some evidence of the benefits of either percentage- or dollar-based surcharges, I share my skepticism.

6
The Reverse Partitioning Effect

Finally, if you can't present a partitioned price, how do you best present the total cost?

7
Partitioned Pricing QUIZ

Last quiz! Put your knowledge of partitioned pricing to the test.

Conclusion

1
Goodbye and Parting Words
2
PDF Resource

Use these downloadable notes to remember everything we've learned in this course!

3
References
4
Bonus Lecture: More from Andrew Luttrell
5
Bonus Lecture: Get a Free Psychology PDF Ebook
6
Course Completion Certificate
You can view and review the lecture materials indefinitely, like an on-demand channel.
Definitely! If you have an internet connection, courses on Udemy are available on any device at any time. If you don't have an internet connection, some instructors also let their students download course lectures. That's up to the instructor though, so make sure you get on their good side!
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