Nudge
Why these irrational prices actually work
Mar 4, 2024
Discover why customers spend $342 billion on bottled water when a safer, cheaper alternative exists. Learn how unconventional pricing strategies drive consumer behavior, from high-priced menu items to scarcity tactics. Explore how Costco leverages strategic pricing for customer loyalty and profitability. Uncover the success of embracing a 'cheap' image in marketing, with examples from Ryanair. Delve into the psychology of random rewards and irrational pricing strategies in businesses like Pret and Fiji Water.
23:04
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Quick takeaways
- Tap water in Cleveland was found to be safer than expensive Fiji water, challenging the belief in bottled water safety.
- Irrational pricing strategies, like creating scarcity or extreme value offerings, can drive profits for brands.
Deep dives
False Perception of Safety in Bottled Water vs. Tap Water
The podcast reveals a startling comparison between bottled water and tap water safety. Despite the common belief that bottled water is safer, tests showed that tap water, such as in Cleveland, was actually safer than Fiji water. This challenges the misconception that bottled water is always the better choice in terms of safety.
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