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Unformatted text preview: -1 st movie example: bundle= more profit o Always try to get best/highest profit What are results reserved?-Because two cities are not even close when sum willingness to pay The Psychology of Pricing-Look at consumption ( and other not so hardcore econ concepts) Pricing cues:-Sale sign: because think you are getting a deal-Price ends with 9: just below cutoffsignals better price-Signpost items: if one thing (we actually know the price of) is considered cheap then we think everything else in the store will be too-Make it loss leader to bring people into store (at entrance) Psychology of consumption (graphs):-Attendance= high at beginning but not much until the end for all except for monthly-Make sure people are consuming so they will renew Sunk cost effect:-Use this to feel like you are not wasting money...
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