Clever pricing strategy
It’s Marketing 101, however it’s a strategy that the music industry hasn’t seemed to have caught onto just yet.
If you were offered the following, which would you choose?
- Download album £7.99
- Physical album £14.99
- Download and physical album £14.99
In a recent study it was found that most people would choose the 3rd option. However when the study is repeated with just options 1 and 3, then most people would instead go for option 1.
This is because option 2 is a psychological decoy. It gives the impression that option 3 represents the best value for money, even though it is more expensive than option 1. Pretty smart hey?