This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

CFO Insights — What’s the right price? The equation isn’t so simple

Published on: Jul 27, 2017

Humans instinctively consider a number of factors when measuring the merits of a purchase and are also highly sensitive to how much their neighbors paid for the same product. Consumers can be fickle, and behavioral science suggests that this is completely natural, if not necessarily rational.

Salespeople also succumb to behavioral biases, which can affect their ability to maintain price points. Two common pitfalls include underestimating how much anchoring can drive customers’ reactions and undercutting themselves – and the organization’s pricing strategy.

By confronting these mistakes head-on, organizations can set up guardrails that account for behavioral biases and faulty execution.


Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.