The Impact of Psychology on E-Commerce Pricing

In this episode of the ASOM Pod, hosts Jimmy Kim (CEO of eCom Email Marketer, formally Founder of Sendlane), John Roman (CEO of BattlBox), Amer Grozdanic (CEO of Praella), and special guest: Greg Dalby (SVP eCommerce at The Woobles) —to unpack one of the trickiest levers in brand strategy: pricing.

They break down real-world examples of brands like Champion, Milk Bar, Hyundai, and Sharper Image, diving into the psychological vs. economic pricing debate and what it means for perceived value, brand equity, and long-term growth. If you’ve ever wondered whether your price tag is helping or hurting your brand—this one’s for you.

What You’ll Learn in This Episode:
– Why pricing is about psychology, not just profit margins– What happens when premium brands go mass market (and lose their edge)– How Fender uses customer feedback and performance metrics to price smart– The merchandising + procurement loop that protects premium perception– Insights from The Handbook of the Psychology of Pricing you’ll actually use

If you’re building a brand people aspire to buy into—not just bargain-hunt from—hit play and take notes.

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Big shoutout to our sponsors who make this podcast possible!

Omnisend — With 125,000+ eCommerce merchants, Omnisend is the all-in-one email & SMS marketing platform built to deliver seamless, personalized experiences via email and sms with ease. Learn more at https://www.omnisend.com/

Alia -  An app that is revolutionizing how brands turn website visitors into loyal customers. With some of the highest performing pop ups in eCommerce, Alia is helping brands ditch traditional webforms and double down on education, personalization and conversion. We highly recommend you check out :https://www.alialearn.com/

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00:00 Teaser Trailer

00:47 The Toilet Paper Conundrum

02:33 Welcome to the ASOM Pod

03:12 Special Guest Introduction

06:23 The Psychology of Pricing

17:36 Subscription Pricing Strategies

33:19 Economic vs. Psychological Pricing

37:04 Psychology of Pricing in Subscription Services

39:27 The Role of Merchandising Teams

41:04 Procurement and Product Testing Process

42:03 Customer Feedback and Retention Strategies

47:52 Brand Evolution: From Cheap to Premium

47:57 Case Studies: Champion, Hyundai, and Juicy Couture

59:24 The Rise and Fall of Sharper Image

01:03:16 Book Review: Handbook of Psychology of Pricing

01:11:39 Conclusion and Next Episode Preview

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Follow Jimmy Kim at: 

X:  https://www.twitter.com/yojimmykim 

Linkedin:  https://www.linkedin.com/in/yojimmykim

IG: https://www.instagram.com/@yojimmykim 

Tik Tok: https://www.tiktok.com/@yojimmykim

Follow Bryan MacDonald at:

X: https://www.twitter.com/bryanomaspride

LinkedIn: https://www.linkedin.com/in/bryan-macdonald-ct

IG: https://www.instagram.com/@anythingbutasalad

Tik Tok: https://www.tiktok.com/@anythingbutasalad

Follow John Roman at: 

X: https://www.twitter.com/@JohnMRoman

Linkedin: https://www.linkedin.com/in/john-roman/

IG: https://www.instagram.com/@johnnyromes

Tik Tok: https://www.tiktok.com/@johnmroman

Follow Amer Grozdanic at: 

X: https://www.twitter.com/@AmerGrozdanic

Linkedin: https://www.linkedin.com/in/amer-grozdanic

IG: https://www.instagram.com/@amergrozdanic

Tik Tok: https://www.tiktok.com/@amergrozdanic

Contact us at hello@asompod.com for sponsorships, appearance requests, interviews, or general information!

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