A quick note on something currently mistifying me.
Dan Ariely’s Predictably Irrational is a wonderful book, full of studies and academic research and whose sole purpose is to make us feel bad about how far from smart we can be, when it comes to marketing.
In it, he goes beyong simply describing price anchoring, which is the practice of steering your mind towards what the seller thinks is a fair price, and would really like you to agree that, why, but of course it is!
He describes decoy pricing, where you are introduced to a pricing scheme that will make the seller’s target price more desirable by introducing a highly favorable comparison to a not-so-sexy alternative.
See, for instance, the famous example of a subscription to the Economist. Unsurprisingly, introducing option #2 gave option #3 a nice bump where, previously, people realized that they were perfectly content with paying half that for option #1.
So far, I imagine that this has been fairly easy to follow.
I will now simply post a couple screenshots from Bloomberg’s website.
Here is the first one. As you can see, totally by the book:
And here is the second one. Feel free to let me know if you break the code.
What happened to their annual plan? Did they break their Credit Card Imprinter?