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No,99 prices don’t hurt quality perceptions

Ariyh

📝 Intro We've seen in previous insights and in Ariyh's Pricing Playbook that just-below prices are effective at making a price look significantly cheaper (e.g. Until today, based on a few notable studies, we thought that just-below prices had a big downside: they make the products priced that way seem lower quality.

Price 62
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Deflation comes to ecommerce as online prices fall 2% in July

Martech

Online prices were down 2% in July compared to June and 1% compared to last year, according to the Adobe Digital Price Index. This is the first decrease since January 2020, just before the pandemic and follows three consecutive months of slowing price increases. It is also the category’s third straight month of price decreases.

Price 96
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Apologies work better than compensation

Ariyh

Previous insight: When ads go from effective to annoying (more insights here ) People are more forgiving when given a sincere apology compared to a cash compensation Channels : Customer Experience For : B2C. more likely to forgive slow service at a fast food restaurant (v.s. 20% price compensation). Can be tested for B2B.

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When to use direct mail vs email marketing

Ariyh

Previous insight: No,99 prices don’t hurt quality perceptions (more insights here ) Use direct mail to acquire new customers, and email to retain them Topics : Ads | Brand & Strategy For : B2C. software, food, services) and in other countries are likely to vary. US, Germany, Italy). The effects for other products (e.g.

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Don’t tell people how much to tip

Ariyh

Previous insight: Price placebos are weaker than we thought (more insights here ) Suggested tip amounts backfire Channels : Customer Service | Customer Experience | Reviews For : B2C Research date : February 2023 📈 Recommendation Don’t include suggested tipping amounts on your receipts (e.g. for 15% gratuity, $28.48

Food 102
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Keep your product packaging simple

Ariyh

Previous insight: When to use real vs unrealistic product images (more insights here ) Simple packaging design increases how much customers would pay for your product Channels : Packaging | Product | Brand Design For : B2C. personal care products, healthy food, supplements). uncrowded, plenty of empty space, simple shapes).

Product 101
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$221 billion adds up to a record online holiday season

Martech

Consumers may have struggled with gas prices, the cost of some food items and (as always) the cost of housing over the course of the year, but come holiday time those purse strings were loosened. Electronics rang the bell for discounts peaking at over 30% of list price. Why we care. At least that’s one possible takeaway.

Retail 93