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  • How to Stop Customers from Fixating on Price

    Surprisingly, your best tool for getting customers to see beyond price may be the price itself. New research finds that four pricing moves in particular can cause buyers to stop treating your offering as a commodity and instead consider its quality and relevance to their individual needs. You can change the basis of your pricing structure, as Goodyear did when it priced tires according to how many miles they would last. You can stimulate curiosity with willful overpricing, as Burt's Bees does with its natural beauty products. You can partition a price into component charges to make customers notice a key benefit-as IKEA does by charging separately for a table's top and legs, reminding people of its useful modularity. Or you can price the options you provide uniformly-as Apple does when it charges 99 cents for any track on iTunes-so that customers simply focus on their preferences. The power of each of these strategies is illuminated by controlled studies the authors conducted to understand the link between price and customer attention.
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  • The London 2012 Olympic Games

    It's 2009 and Paul Williamson, Head of Ticketing, must finalize ticket prices for the 2012 London Olympic Games. Yet, there are many criteria to consider. First, given the importance of ticketing to the Games' bottom line, he has a strong incentive to maximize revenues. Second, because the entire world will be watching, he wants to maximize attendance-not just at the Opening Ceremony and swimming finals, which are easy sells, but also at events such as handball and table tennis, which are not. Third, he wants to fill seats with the right people-knowledgeable fans who add to the energy and atmosphere of the event. Finally, tickets have to be accessible not only to the world's elite but also to average Londoners, many of whom live around the corner from the Olympic Park.
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