Why $9.99 Tricks Your Brain — Wine Pricing Psychology Pt. 4

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The Best 5 Minute Wine Podcast 3 min 2 speakers 3 chapters transcribed 3 months ago
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What is the main topic discussed in this episode?

Forrest Kelly 0:04
Welcome, welcome to the best five-minute wine podcast with Forrest Kelley.
Claire Wang 0:19
Because this is our final segment with Claire, we went out with a little game, true or false or both, on the psychology of pricing, starting with wine. Because, of course, we did. People are more likely to buy a product priced at $9.99 than $10, even though the difference is one cent.

Why does $9.99 pricing outperform $10.00?

Forrest Kelly 0:36
Yes, true.
Claire Wang 0:38
A higher price always means higher quality.
Forrest Kelly 0:41
False.
Claire Wang 0:42
If two identical wines are priced differently, people often rate the more expensive one as tasting better. Limited time offers are usually based on real scarcity. Discounts make people feel like they're saving money, even if the original price was inflated. Most consumers make fully rational, logical buying decisions. False. Is that a big false or just a little false?
Forrest Kelly 1:14
A big false.
Claire Wang 1:17
I don't think there's any gradients on that, but free shipping can increase sales more than lowering the product price.
Forrest Kelly 1:23
True.
Claire Wang 1:25
I would agree with that, yeah. Seeing a higher priced option first can make the next option feel like a better deal.
Forrest Kelly 1:30
True.
Claire Wang 1:32
Price has no effect on how your brain experiences taste.
Forrest Kelly 1:36
False.
Claire Wang 1:36
You said that one in the Stanford theory in that test. Businesses spend a lot of time on pricing strategy than most customers really realize.
Forrest Kelly 1:46
False. I wish they do, but they don't.
Claire Wang 1:52
Awesome. You really came through on this.
Forrest Kelly 1:55
That's fun. Thank you, Forrest.

What did the Stanford experiment reveal about price and taste?

Claire Wang 1:59
Yeah, I agree. That was fun. You got them all right. Very impressive. I have to say, we came for the wine psychology and stayed for the pricing masterclass. Very good job, Claire. I've learned so many things in our discussion. Especially the number on the label is doing a lot more work than I've actually thought about. And you've got something big coming down the road. Go ahead, Claire, take it away as we close out the show. Thank you very much for being a guest.
Forrest Kelly 2:26
I have a book coming up in September. It's called The Price of Influence. It is a book talking about how to get a yes, anything you want. And it can be selling a bottle of wine or pitching a great idea to your boss, asking for a promotion or asking for a pay increase. The secret is how do pricers approach this? So if you want to know how a pricer would do that, Well, follow me on LinkedIn or my website, player-wang.com, and you'll find more details there. Thank you so much, Forrest. Have a good one. Ciao. Thank you for listening. Tell your friends and pets. Please like and follow.

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