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The Sneaky Price Increase

Harvard Business School´s Working Knowledge site has just republished a fascinating piece from 2004 in which HBS marketing professor John Gourville tells us something we should already know, but don´t: Consumer products companies “raise prices” on us constantly by reducing the quantity of product they sell for a certain price. (Examples: coffee, breakfast cereal, ice … Continue reading

Music at market prices…

Amie Street aims to make it easy and affordable for consumers to discover new independent music. What makes it unique? Every song sold at the ´fly little music site´ starts off being free, and the price increases to a maximum of USD 0.98 depending on how many people download it. The more popular a song, … Continue reading

60% of the internet surfers compares prices through the internet

Online price comparision is rising. 60% of the internet visitors searches on the net for the lowest price. This is a conclusion of Trendbox. Another conclusion of Trendbox; it is rare to have consumers that to not do home banking. Online prijsvergelijking is in opmars. Van de internetters zoekt zestig procent op het web naar … Continue reading

Coca Cola guessed right with their price increase (of 40%…)

Coca-Cola guessed right during the supermarket price war by introducing a new soft drink bottle. The constantly price reduction of cola has stopped. The soft drink producer introduced new plastic bottles for cola and other soft drinks one year ago. For the bottles there is a deposit of 25 cents. The introduction involved a price … Continue reading

99-cent pricing hooks hoppers

Only $9.99? I’ll take it! But at $10, fuhgedaboutit! And that, researchers say, explains why so many goods and services have prices ending in .99 In classical economic theory, consumers make rational choices based on price comparisons and other objective factors. So any shopper who’s looking at a $49.99 cell phone knows he’s in effect … Continue reading