Pricing Psychology: Anchoring, Decoys, and Freemium Models
The Product Handbook - A podcast by Product manager interview prep and practice
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In this episode of The Product Handbook, we dive into the psychology of pricing — and how small tweaks can change the way customers perceive value.You’ll learn:How anchoring shapes purchasing decisions and why the first price shown matters so muchThe decoy effect and how an extra option can make your preferred plan look irresistibleWhy .99 pricing, freemium models, and value-based pricing work the way they doHow to test and validate your pricing strategy with data instead of guessworkIf you’ve ever wondered why a subscription suddenly feels like a bargain or why one menu item makes the rest look affordable, this episode unpacks the frameworks and tactics behind pricing that sells.
