Say a buyer plans to purchase a mini dress for summer. She explores several online shops and merchant platforms while conducting research using Google. One retailer uses behavioral pricing and records customer visits. Additionally, the merchant has access to crucial information like the browser's search history or the website's breadcrumbs. After first leaving the website, the buyer quickly returns to view the product page. Since she has previously viewed the product page, the store is aware that she is interested in that particular item.
The seller could use this information to raise the price of the summer mini dress if the customer comes back to the product page. This often takes place in online retail. When users visit particular stores and marketplaces frequently, the prices of goods are slightly changed — by 5%, for example. This is a signal that the customer should act. After recollecting the item’s price when she first visited the website, she believes the price will increase more and makes a purchase. This is how behavioral pricing works.Decoy pricing
can constitute a behavioral pricing strategy. Say a small and large coffee at a coffee shop used to cost $3 and $7, respectively. At that time, only 13% of customers purchased a large coffee, while 87% chose a small one. At this point, a mid-sized third alternative with a $6 price tag was introduced. After that, 74% of customers began purchasing large coffees for $7, while just 26% continued to buy small ones. This case demonstrates once more how our purchasing decisions are influenced by a false perception of a good offer.