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• Pricing Psychology
• RM Level One - The Basics of Revenue Management
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Pricing Psychology

Pricing decisions cannot be made in isolation. Yet, prices may not always have to be competitive. Worse, pricing mistakes can significantly devalue a company. For instance, one can price too low and see sales volume decline. Also, there are magical numbers that appear to outsell other price levels. A skilled pricing professional will notice all the tendencies of market players and be aware of the psychology of pricing.

This course takes some of the guesswork in setting prices out of the equation. Using consumer purchase behavioural patterns observed from pricing psychology case studies, this course allows participants to understand the importance of psychology and how to apply it for optimal revenues. It deals with numerology, premium pricing, line-category pricing, reasonable pricing, smart discounting, unwise discounting, and brand pricing. Little numerological tricks such as using cents or specific numbers are also discussed. The course is invaluable for hospitality companies such as airlines and tour operators operating in highly competitive markets.

This course includes 5 modules which will provide you with a general overview as well as specific applications of using pricing psychology as another tool for optimising revenues:

Module 1: Introduction to Pricing Psychology

Module 2: Reference Frameworks and Value Perceptions

Module 3: Changing Consumers' Perceptions

Module 4: Price Point Performance Measurement

Module 5: Incorporating Pricing Psychology into Revenue Management

Target Audience

Marketing senior management, marketing directors, RM directors, RM managers and directors, pricing director, pricing analysts,  reservation professionals/agents and other front-line staff. 

Learning Objectives

• Unveiling a perspective of pricing most underestimate.
• To be familiar with factors that affect consumers' perception of value .
• To discuss consumer purchasing behaviour as related to pricing.
• To understand the various competitive pricing issues.
• To examine information that may allow product innovation (new products, new prices).
• To understand how pricing psychology can be tested and its performance assessed.
• To examine the various ways in which consumer perceptions can be influenced with the objective of optimizing revenues.
• To learn how to avoid unnecessary revenue leakage.

Duration

2 days on-site, or ten (10) 1-hour sessions through distance learning.

Training Materials

Course manual consisting of 5 modules, and industry articles and presentations.