This is the time for sales and promotions around the world, from the madness of Black Friday to the January Sales that promise to give us so much more for so much less. But are sales and discounting really in the interests of business and brands? The evidence is pretty clear – the answer is a resounding NO.
As Rory Sutherland says on the cover, price is “the most understudied, undervalued and oversimplified subjects in business decision-making”. The Psychology of Price by Leigh Caldwell provides a clear, comprehensive and usable guide to pricing from the perspective of human behavior, and is really the only book of its kind on this topic.
“They know the price of everything and the value of nothing.” - Oscar Wilde
Priceless is a great read for anyone who wants to explore the psychology behind pricing (and currently only one of two books that really addresses this topic – I’ll be reviewing the other soon). Although it lacks an overall storyline and structure, the book is easy to read (spread across 57 chapters) and full of anecdotes and case studies. It contains extensive discussions of some of the underlying theories which can help explain some of the strange and quirky ways in which humans deal with issues of money, most notably those of behavioural economics and its chief spokesperson Daniel Kahneman. Read more »