Exploring the Effectiveness of Random Rewards and Irrational Pricing Strategies

Every year $342 billion is spent on bottled water. And yet, for many of those customers a safer version, that tastes the same, is 300x cheaper. Our collective thirst for bottled water is largely irrational. It doesn’t make sense. But so, it seems, are the pricing strategies of several major brands, from fashion, to food, to flights, irrational prices often trump rational approaches. Today, Melina Palmer, host of the Brainy Business, explains why irrational prices surprisingly sell. 

Melina’s podcast: https://thebrainybusiness.com/

Melina’s book (with free chapters): https://thebrainybusiness.com/nudge

Fiji ad: https://tinyurl.com/yufdwdj9

Cleveland Utilities Response: https://tinyurl.com/4hhh45wj