The price is that aspect of the marketing mix which has the fastest and greatest influence on sales, turnover and margins. As a rule, it’s assumed that higher prices have a negative effect, and lower prices a positive effect on sales. This isn’t completely wrong: However, if we just take this into account then many opportunities are wasted.

Because people’s purchase decisions are rarely rational, there can be anomalies in the demand function, where there’s potential for margins and, even, for increasing sales, too.

Behavioral economics makes people's irrational decision-making behavior predictable. It provides us with a basis for developing pricing strategies, which reflect both the interests of the company and the customers’ needs and is the basis for sustainable success.

How do you recognize customer needs?

Both types of innovation require a fundamental understanding of what makes customers tick, so we can find out what they really want and need from my product.

But is it possible to know precisely what customers want? Behavioral Economics can help us here, too. The basis is what customers consider important in their (product) decision, and how they proceed in reflecting these success criteria in their decision. When we know about the customer's attitudes and what or why he actually does it, then we can draw conclusions from it - and build products and services from it, on the basis of the behavior patterns shown, which lead - with a high probability - to the customer deciding in favor of your product.