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
People think cost and brand equals quality. They will pay more for the exact same coffee pot because it’s from a fancy store instead of Walmart because its obviously better quality in the expensive store vs the cheap store.
Latest Answers