438 karma · joined March 11, 2015
Ideally, you should run some usability tests to figure out the bumps within your website. The tests don't need to be fancy. Just ask someone with fresh eyes to complete certain tasks (and ask them to verbalize their thoughts as they work toward that goal). Along the way, jot down any bumps or confusion that those users experience.
Afterward, you can use that guide to find specific tactics to overcome those bumps.
Hope that helps!
> "You should avoid charging different prices based on past behavior, demographics, or any other factor besides natural supply and demand."
That quote is taken out of context. Obviously you should determine prices based on those factors. That quote was referring to dynamic pricing and how you shouldn't charge different customers different prices based on those factors (e.g., I'll charge $200 to Customer X, but I'll charge $150 to Customer Y because I don't think he'd buy at $200).
1. I remember reading about that concept in Ariely's book. And I actually considered adding it to the list, but I wasn't sure where to incorporate it.
2. I think everything boils down to your ability to communicate the value of your offering. People will pay any amount, as long as they perceive to be getting more value from it.
3. And I can't believe I didn't mention Kahneman anywhere! His research was a large foundation behind a good portion of those techniques.
Although most applications of that research are often applied to business and marketing, the underlying research has broader implications. For example, some of those studies progressed our understanding of cognition in general (the researchers merely used numbers in their study - which was then adapted for pricing applications). But we now understand more about our brain's processes than we did before.
And ,with a better understanding of cognition, we can help pave the way toward other, more benevolent applications (e.g., curing psychological ailments).
So even though that research may not produce benevolent results directly, I would argue that it helps indirectly (among many other benefits too).
So that's my two cents.
For example, research shows that anchoring effects occur even when people are explicitly warned about anchoring before they make their estimate.
On the other hand, if people are aware of other pricing techniques, then those techniques could backfire in a negative direction. For example, researchers have found a "reverse priming effect." In other words, if people detect some persuasive intent behind the marketer, then those people are more likely to resist that persuasion attempt. So it could make things worse.