“How do you like to relax? Do you read a book? Go for a hike, maybe? How about grabbing dinner with friends? The list goes on, and we consider these activities leisure. This hour, we learn what leisure is and how to master it.” a discussion with Prof. Selin Malkoc from The Ohio State University Fisher College of Business
An Interview with Professor Joseph K. Goodman. In this interview, he discusses the importance and dynamics of focusing on the consumer to accelerate Electric Vehicle adoption.
Carbon Radio. Feb 18, 2022.
“It’s called ‘drip pricing,’” said Joseph K. Goodman, an associate professor of marketing at Ohio State University.
“Most consumers find this strategy unfair, as one might expect,” he told me. “They think they’re getting something at a price and then feel cheated. The brand basically broke its promise.”
It makes consumers less likely to choose pricey upgrades
Setting a price just below a round number ($39.99 instead of $40) may lead consumers into thinking a product is less expensive than it really is – but it can sometimes backfire on sellers, a new study shows.
Researchers found that this “just-below” pricing makes consumers less likely to upgrade to a more expensive version of the product or service, such as a bigger size or higher-end trim on a car. The just-below price that makes a product itself seem like a good bargain also makes the leap to the premium product seem too expensive, said Junha Kim, lead author of the study and doctoral student in marketing at The Ohio State University’s Fisher College of Business.
“Going from $19.99 to $25 may seem like it will cost more than going from $20 to $26, even though it is actually less,” Kim said. “Crossing that round number threshold makes a big difference for consumers.” Kim conducted the study with Joseph Goodman and Selin Malkoc, both associate professors of marketing at Ohio State. Their research was published yesterday (Aug. 26, 2021) in the Journal of Consumer Research.
One tip: Don’t pack the trip with scheduled events
By Suzanne Oliver for The Wall Street Journal
It feels like we just got here. How often have we all said that when a vacation is coming to an end? We blinked and it’s the last day. And then when we get home: It’s like we never left.