Learn more about business with this collection
The impact of opportunity cost on personal and professional life
Evaluating the benefits and drawbacks of different choices
Understanding the concept of opportunity cost
Companies often have difficulty talking with customers about prices and have a legitimate need to reduce “friction” in the transaction. They accomplish this by using tricks such as tweaking price endings to distort perceptions or to signal a bargain. For example, $9.99 is perceived as a whole dollar cheaper than $10.
The challenge for purpose-oriented organizations is to be transparent and truthful.
A helpful starting point to improve how organizations present their prices is to accept that price is an integral part of its dialogue with customers. The next step is how to explain it.
The field of linguistics gives us four rules to have meaningful dialogue:
Position the price as a component of the company's responsible and ethical intentions. For example, Southwest Airlines price fairness in the name of its approach to service: On its website, the airline describes "Transfarency" as a "philosophy in which customers are treated honestly and fairly, and low fares actually stay low — no unexpected bag fees, change fees, or hidden fees."
From a linguistics standpoint, this applies to the rule of relevance:
Customers often wonder how a price was set or why it has recently changed.
This suggestion applies to the linguistic rule of manner by being very clear. Demystifying how prices are set or changed can help establish a trusting relationship with customers. For example, the furniture company Neptune provides extensive detail of its underlying logic for pricing.
Any of the four linguistic rules for dialogue can be broken if done in a lucid way.
More like this
How Ikea tricks you into buying more stuff
Explore the World’s
Take Your Ideas
Just press play and we take care of the words.
No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.
2 Million Stashers
Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.
This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!
Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.
Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.
Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.
Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.
Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.
I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!
Read & Learn
Access to 200,000+ ideas
Access to the mobile app
Unlimited idea saving & library
Unlimited listening to ideas
Downloading & offline access
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates