Pricing strategy of the future
Neuroscience can assess customers' true willingness to pay
Neuroscience helps companies understand how customers unconsciously perceive prices and predict willingness to pay of entire populations.
You probably know that the price of a product affects the customers’ buying behavior and that price is one of the most important factors influencing profit margin. But what is the right price? And how can companies set a price that is in accordance with the customer’s associated value of the product or service?
Neuroscience can not only help to answer these questions and to understand how customers‘ unconsciously perceive prices but can also provide insights into customers’ willingness to pay.
The current joint study between Deloitte and The Neuromarketing Labs is addressed to companies that aim to improve their pricing strategy. Therefore, the impact of anchor prices has been investigated using EEG brain scans. In this context, the perception of prices for messaging services was analyzed applying different price anchors. The result displays a higher willingness to pay of the customers compared to the actual price indicating that the company could have charged more for its product. This leads to the conclusion that adopting pricing strategies according to neuroscientific based recommendations most likely is a valuable approach for enterprises.
The study is shedding light on the following questions:
- How much value do my customers associate with my products and how much are they really willing to pay for them?
- When working with price anchors within my pricing strategy, what are customers willing to pay?
- How can I apply neuroscience to determine the optimal price?