I can buy a coffee pot at Walmart for $45. That exact same in every way coffee pot sold at Khol’s for $75. Same thing with stores like Meijer where most non grocery items are marked at a premium vs other stores; and they sell.
Why do average (including myself often) people willingly pay more for something they can easily get for less? The entire psychology of pricing confuses me and makes me wonder. How do they trick people just by putting a 1 or a 9 somewhere? Or am I looking at it all wrong?
In: Economics
Convenience and ignorance. Usually if it means not having to go to a serving store, people are willing to pay a little more. In the case of a big difference like you mentioned, usually ignorance. I needed a countertop appliance, but not badly enough to do my research, I I simply bought it where I usually did and assumed they weren’t cheating me. People are pretty lazy.
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