Which brand of cola would you rather drink: Pepsi Cola or Mila Cola? My guess is that you’d prefer to quench your thirst with Pepsi Cola. How appealing is Pepsi? You’ve probably never even heard of Mila Cola. In fact, I made that brand up.
Now let’s take a step back in time and imagine a choice between Pepsi Cola and Coca Cola. How appealing is Pepsi now? Chances are the appeal of the brand took a dive when the choice context changed.
Ouch. Last week taught me a painful lesson in humility. I learned I was just using half the power of a persuasion principle I was convinced I’d mastered perfectly: social proof.
Social proof works. Period. No question about it.
Pricing directly affects the consumer’s opinion about a product. A slight difference in price can have a major impact on how the consumer feels about buying - and even his or her opinion on the quality of - the product.
Now, let’s discover if, why and how you should change your prices.