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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, yet it builds on the assumption that customers are perfectly informed, selfish and rational decision makers with stable preferences. These assumptions are contradicted by an overwhelming amount of insights from “Behavioral Economics” and “Neuroscience.”

This simplification facilitates mathematical modelling and arithmetical price optimization, but it totally ignores margins that arise from the predictably irrational decision strategies which can be found in every sector. 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 and case studies from different industries in B2C and B2B, this seminar will show how you can develop more profitable pricing strategies by applying these insights to define price level, price structure, price dynamics as well as price communication.

Workshop level: 400
(Thursday, 7 December)

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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