The Psychology of Pricing

Hour 2

Under the tight times of the recession, many of us have become obsessive bargain hunters. But buyers beware – those markdowns and discounts have been carefully crafted by price consultants to manipulate our sense of value. The psychology of pricing is the subject of author William Poundstone’s new book Priceless: The Myth of Fair Value (and How to Take Advantage of It). Poundstone writes about the different techniques used to get consumers to spend, including placing an exorbitantly high-priced “anchor” item in upscale stores to make all the other items appear affordable. We’ll talk to Poundstone about the pricing tricks marketers play and why they are so successful.

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[audio: 030910_110630.mp3]