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Behavioral Pricing: Shifting the Paradigm…

Behavioral Pricing: Shifting the Paradigm…

Behavioral Pricing: Shifting the Paradigm from ‘Value-Based Pricing’ to ‘Behavioral Economics’

‘Value-based Pricing’ has been widely accepted as the best approach to pricing. Nevertheless, all classical pricing tools within this approach still build on the assumption that customers behave like the famous…

‘Homo economicus’ – perfectly informed selfish and rational decision makers with stable preferences. These assumptions are each contradicted by an overwhelming amount of insights from ‘Behavioural Economics’ and ‘Neuroscience’. Although this simplification facilitates mathematical modelling and arithmetical price optimisation, it totally ignores margins that arise from the predictably irrational decision strategies which can be found in every sector, be it B2C or B2B. In the end, this inhibits us from defining smarter pricing strategies which are able to leverage the frugal heuristics and systematic biases of the decisions “real” customers are making.

Building on a validated and award-winning framework as well as on many case studies from different companies and industries, this workshop will systematically convey insights that go beyond the classical assumptions and tools of pricing research and strategy.

 

Workshop level: 400
(Thursday, 29 November)

Attendees will learn:

  • An overview of recent research insights on human decision making

  • To leverage unexpected margin potentials hidden behind predictably irrational decisions

  • To modify and complement common pricing methods to avoid risks and pitfalls

Florian Bauer, PhD

Founder and Member of the Executive Board, Vocatus AG

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