Shot #4 : Price Positioning of Product Bundles to increase sales

Hi,

Here’s your second shot for the week.

There was a consumer research done by Bagchi & Davis, on how presentation order affects package perceptions.They did an experiment on price position of a product bundle. The product messages were as follows :- $29 for 70 items- 70 items for $29Their experiment showed the second message is more effective.However, this holds true only if the following two conditions are satisfied 1. THE UNIT PRICE CALCULATION SHOULD BE DIFFICULT

When the calculation is difficult, customers use heuristics to make their purchase decision.-If the first thing displayed is PRICE, customer focuses on COST.-If the first thing displayed is QUANTITY, customer focuses on BENEFITS.

2. THE PRODUCT QUANTITY MUST BE LARGER THAN THE DISPLAY PRICEWith larger quantity, an anchoring effect occurs. Customers anchor on the high quantity (e.g. 70), and they perceive the combo at that price is an attractive deal.

Images and Info Credits: Nickkolenda.com

Now you know how to create better combo-price strategies for your product :)

Thanks,

Luv Arora

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