survey Increasing your domain prices - What ChatGPT says about it. This may make you rethink your pricing strategy. Feel free to respond and vote...

[infosec3]

I have consulted a few sources regarding pricing theory and have read a lot about it. I also consulted ChatGPT and wrote a prompt asking whether people's perception about the value of a product would change if you apply a high price tag. This is the response I got:


People's perception of the value of a product can indeed be influenced by its price. When a product has a high price tag, several psychological and social phenomena come into play:

1. Price-Quality Heuristic: Many people believe that there's a direct relationship between price and quality. So, when they see a high price, they may automatically assume the product is of superior quality.
2. Exclusivity and Prestige: High prices can be associated with luxury, exclusivity, and prestige. Owning or using expensive items can be seen as a status symbol, signaling wealth or refined taste to others.
3. Reference Price: If a product is priced much higher than comparable products (or what the consumer expects it to be priced), it can make other slightly lower-priced items seem like a bargain, even if they are still expensive.
4. Risk Perception: A higher price can reduce the perceived risk of purchasing. The logic is, "If it's that expensive, the company must stand behind its quality."
5. Anchoring Effect: The first price a person sees for a type of product acts as an anchor, influencing how they perceive the value of other similar products. If the first product they see is very expensive, subsequent products might seem more reasonably priced in comparison, even if they're also expensive.
6. Cognitive Dissonance: After making a purchase, especially an expensive one, people often seek to justify the decision to themselves and others. They may emphasize or even exaggerate the benefits of the product to align their beliefs with their actions.

However, it's essential to note that this doesn't work for every product or in every market. There are limits to how much people are willing to pay, and the context is crucial:

1. Target Audience: A high price may be a deterrent for some demographics or market segments, while it might be an attraction for others.
2. Product Category: While some categories (like luxury goods) can often benefit from high prices, others (like staple goods) may not see the same benefit.
3. Competition: If there are similar products in the market that offer the same value at a lower price, a very high price tag can deter buyers.
4. Information Availability: In markets where consumers can easily access information about product quality and compare features, a higher price may not always convey higher value.
5. Economic Conditions: In economic downturns or recessions, even those who value luxury might become price-sensitive.

In conclusion, while a high price tag can influence people's perceptions of a product's value, it's not a guaranteed strategy for success. Context, product positioning, branding, and consumer behavior all play a role in determining how price affects perceived value.

 

[Etim Abasiama]

Nice, I love the reasoning and the conclusion. I'll increase the price of what needs to be increased and vice versa

 

[pb]

People also have an internal valuation of a given product, so if they see ThisIsAGreatDomainName.top for $1M they won't just go and think "wow, it must be pretty valuable", instead they'll think that the owner is insane or a 10-year-old.