{"id":29390,"date":"2019-09-24T10:32:27","date_gmt":"2019-09-24T14:32:27","guid":{"rendered":"http:\/\/www.reviewob.com\/?p=29390"},"modified":"2020-02-04T16:17:05","modified_gmt":"2020-02-04T21:17:05","slug":"what-do-your-patients-think-of-the-pricing-of-your-products","status":"publish","type":"post","link":"https:\/\/reviewob.com\/what-do-your-patients-think-of-the-pricing-of-your-products\/","title":{"rendered":"What Do Your Patients Think of the Pricing of Your Products?"},"content":{"rendered":"

By Mark Wright, OD, FCOVD,
\nand Carole Burns, OD, FCOVD<\/strong><\/p>\n

\"\"<\/p>\n

Sept. 25, 2019<\/strong><\/p>\n

You have one idea about how your products are priced, and your patients may have another.<\/p>\n

Psychological pricing is based on the theory that some prices have a bigger psychological impact on our patients than others. Here are two pricing strategies that you can adopt in your practice.i<\/sup><\/p>\n

Charm Pricing Strategy<\/strong><\/span>
\nWith Charm Pricing, reduce the left digit by one. As an example, $100 becomes $99.99. Your brain processes $100 and $99.99 as different values. $99.99 is processed as less expensive than $100.<\/p>\n

Thomas and Morwitzii<\/sup> conducted research they called “the left digit effect in price cognition.” They found that if the leftmost digit changes to a lower level (e.g.: $100 is changed to $99.99) the price is perceived as smaller, but this perception does not hold if the leftmost digit remains unchanged (e.g.: $80.60 is changed to $80.59).”<\/p>\n

\n

Other Articles to Explore<\/h4>\n
Top Psychological Drivers to Spur Shopping in Your Optical<\/span><\/a><\/p>\n

How to Gauge the True Value of Every Employee<\/span><\/a><\/p>\n

How to Tell if Patients View You as their Champion<\/span><\/a><\/div>\n<\/div>\n

<\/div>\n

The University of Chicago and MIT ran an experiment in which women’s clothing were set at prices of $34, $39 and $44. The clothing sold best at $39 even though the price is more expensive than other options.<\/p>\n

Keith Coulter\u2019siii<\/sup> research at the graduate school of management, Clark University, suggests that this effect may be enhanced when the cents are printed in a smaller font.<\/p>\n

“Prestige” Pricing Strategy<\/strong><\/span>
\nPrestige Pricing is the opposite of Charm Pricing. In Prestige Pricing all numerical values are rounded. An example would be $99.99 is changed to become $100. Research by Kuangjie Zhang and Monica Wadhwaiv<\/sup> found that rounded numbers are more fluently processed and encourage reliance on feelings.<\/p>\n

\"\"<\/a><\/p>\n

Non-rounded numbers are less fluently processed and encourage reliance on cognition. The rounded numbers “feel right” because the purchase is being driven by feelings. Zhang and Wadhwa found that people were more inclined to buy a bottle of champagne priced at $40 rather than at $39.72 or $40.28.<\/p>\n

So, which pricing strategy should I use?<\/strong><\/span>
\nRun a three-month trial in your practice using each pricing strategy. Find out which one works better in your practice with your patients. Once you have that knowledge, then you can convert all of your pricing into the strategy that works best.<\/p>\n

References<\/em><\/strong>
\ni. https:\/\/www.entrepreneur.com\/article\/279464<\/span><\/a><\/em>
\nii. Manoj Thomas and Vicki Morwitz, Journal of Consumer Research, Vol. 32, No. 1 (June 2005), pp. 54-64 <\/em>
\niii. https:\/\/www2.clarku.edu\/faculty\/facultybio.cfm?id=207<\/span><\/a><\/em>
\niv. Monica Wadhwa and Kuangjie Zhang, Journal of Consumer Research, Vol. 41, No. 5 (February 2015), pp. 1172-1185 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Mark Wright, OD, FCOVD, and Carole Burns, OD, FCOVD Sept. 25, 2019 You have one idea about how your products are priced, and your patients may have another. Psychological pricing is based on the theory that some prices have a bigger psychological impact on our patients than others. Here are two pricing strategies that you can adopt in your practice.i Charm Pricing Strategy With Charm Pricing, reduce the left digit by one. As an example, $100 becomes $99.99. Your brain processes $100 and $99.99 as different values. $99.99 is processed as less expensive than $100. Thomas and Morwitzii conducted research they called “the left digit effect in price cognition.” They found that if the leftmost digit changes to a lower level (e.g.: $100 is changed to $99.99) the price is perceived as smaller, but this perception does not hold if the leftmost digit remains unchanged (e.g.: $80.60 is changed to $80.59).” The University of Chicago and MIT ran an experiment in which women’s clothing were set at prices of $34, $39 and $44. The clothing sold best at $39 even though the price is more expensive than other options. Keith Coulter\u2019siii research at the graduate school of management, Clark University, suggests that this effect may be enhanced when the cents are printed in a smaller font. “Prestige” Pricing Strategy Prestige Pricing is the opposite of Charm Pricing. In Prestige Pricing all numerical values are rounded. An example would be $99.99 is changed to become $100. Research by Kuangjie Zhang and Monica Wadhwaiv found that rounded numbers are more fluently processed and encourage reliance on feelings. Non-rounded numbers are less fluently processed and encourage reliance on cognition. The rounded numbers “feel right” because the purchase is being driven by feelings. Zhang and Wadhwa found that people were more inclined to buy a bottle of champagne priced at $40 rather than at $39.72 or $40.28. So, which pricing strategy should I use? Run a three-month trial in your practice using each pricing strategy. Find out which one works better in your practice with your patients. Once you have that knowledge, then you can convert all of your pricing into the strategy that works best. References i. https:\/\/www.entrepreneur.com\/article\/279464 ii. Manoj Thomas and Vicki Morwitz, Journal of Consumer Research, Vol. 32, No. 1 (June 2005), pp. 54-64 iii. https:\/\/www2.clarku.edu\/faculty\/facultybio.cfm?id=207 iv. Monica Wadhwa and Kuangjie Zhang, Journal of Consumer Research, Vol. 41, No. 5 […]<\/p>\n","protected":false},"author":8,"featured_media":29398,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[151],"tags":[991,1103,813,515,1741,1742],"yoast_head":"\nWhat Do Your Patients Think of the Pricing of Your Products? - Review of Optometric Business<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/reviewob.com\/what-do-your-patients-think-of-the-pricing-of-your-products\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Do Your Patients Think of the Pricing of Your Products? - Review of Optometric Business\" \/>\n<meta property=\"og:description\" content=\"By Mark Wright, OD, FCOVD, and Carole Burns, OD, FCOVD Sept. 25, 2019 You have one idea about how your products are priced, and your patients may have another. Psychological pricing is based on the theory that some prices have a bigger psychological impact on our patients than others. Here are two pricing strategies that you can adopt in your practice.i Charm Pricing Strategy With Charm Pricing, reduce the left digit by one. As an example, $100 becomes $99.99. Your brain processes $100 and $99.99 as different values. $99.99 is processed as less expensive than $100. Thomas and Morwitzii conducted research they called “the left digit effect in price cognition.” They found that if the leftmost digit changes to a lower level (e.g.: $100 is changed to $99.99) the price is perceived as smaller, but this perception does not hold if the leftmost digit remains unchanged (e.g.: $80.60 is changed to $80.59).” The University of Chicago and MIT ran an experiment in which women’s clothing were set at prices of $34, $39 and $44. The clothing sold best at $39 even though the price is more expensive than other options. Keith Coulter\u2019siii research at the graduate school of management, Clark University, suggests that this effect may be enhanced when the cents are printed in a smaller font. “Prestige” Pricing Strategy Prestige Pricing is the opposite of Charm Pricing. In Prestige Pricing all numerical values are rounded. An example would be $99.99 is changed to become $100. Research by Kuangjie Zhang and Monica Wadhwaiv found that rounded numbers are more fluently processed and encourage reliance on feelings. Non-rounded numbers are less fluently processed and encourage reliance on cognition. The rounded numbers “feel right” because the purchase is being driven by feelings. Zhang and Wadhwa found that people were more inclined to buy a bottle of champagne priced at $40 rather than at $39.72 or $40.28. So, which pricing strategy should I use? Run a three-month trial in your practice using each pricing strategy. Find out which one works better in your practice with your patients. Once you have that knowledge, then you can convert all of your pricing into the strategy that works best. References i. https:\/\/www.entrepreneur.com\/article\/279464 ii. Manoj Thomas and Vicki Morwitz, Journal of Consumer Research, Vol. 32, No. 1 (June 2005), pp. 54-64 iii. https:\/\/www2.clarku.edu\/faculty\/facultybio.cfm?id=207 iv. Monica Wadhwa and Kuangjie Zhang, Journal of Consumer Research, Vol. 41, No. 5 […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/reviewob.com\/what-do-your-patients-think-of-the-pricing-of-your-products\/\" \/>\n<meta property=\"og:site_name\" content=\"Review of Optometric Business\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/reviewob\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-24T14:32:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-04T21:17:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/reviewob.com\/wp-content\/uploads\/2019\/09\/9-25-19-price.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1732\" \/>\n\t<meta property=\"og:image:height\" content=\"1732\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mark Wright\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ReviewOB\" \/>\n<meta name=\"twitter:site\" content=\"@ReviewOB\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark Wright\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/reviewob.com\/what-do-your-patients-think-of-the-pricing-of-your-products\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/reviewob.com\/what-do-your-patients-think-of-the-pricing-of-your-products\/\"},\"author\":{\"name\":\"Mark Wright\",\"@id\":\"https:\/\/reviewob.com\/#\/schema\/person\/17e926acbc533883a769a6128244d3f4\"},\"headline\":\"What Do Your Patients Think of the Pricing of Your Products?\",\"datePublished\":\"2019-09-24T14:32:27+00:00\",\"dateModified\":\"2020-02-04T21:17:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/reviewob.com\/what-do-your-patients-think-of-the-pricing-of-your-products\/\"},\"wordCount\":446,\"publisher\":{\"@id\":\"https:\/\/reviewob.com\/#organization\"},\"keywords\":[\"carole burns\",\"column\",\"mark wright\",\"pricing\",\"pricing strategy\",\"psychology of pricing\"],\"articleSection\":[\"Insights From Our Editors\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/reviewob.com\/what-do-your-patients-think-of-the-pricing-of-your-products\/\",\"url\":\"https:\/\/reviewob.com\/what-do-your-patients-think-of-the-pricing-of-your-products\/\",\"name\":\"What Do Your Patients Think of the Pricing of Your Products? 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