Behavioral & Psychological Pricing

Psychological pricing principles including anchoring, decoy effects, fairness perceptions, and behavioral economics to optimize customer decisions.

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What's in this category

  • Anchoring & decoy effects: How initial price exposure influences customer perception
  • Compromise effect (extremeness aversion): Using middle options to guide choices
  • Price–quality signaling: How price communicates product quality
  • Temporal reframing (pennies-a-day): Presenting prices in psychologically appealing ways
  • Thresholds & charm endings: Understanding psychological price points and round numbers
  • Fairness, shared-cost & expenditure effects: What customers consider fair pricing
  • Hurdles (couponing, wait/time/effort): Self-segmentation through friction

How to use this

This category covers the fundamental principles that should guide all pricing decisions. Start here if you're new to SaaS pricing or need to establish a solid foundation before diving into specific tactics. These concepts apply whether you're a startup finding product-market fit or an enterprise optimizing complex pricing structures.

Coming Next

Detailed guides and frameworks for each concept are in development. This section will include:

  • • Step-by-step implementation guides
  • • Real-world case studies and examples
  • • Templates and frameworks
  • • Common pitfalls and how to avoid them
  • • Metrics and KPIs to track success

Dr. Sarah Zou

The SaaS Economist

PhD economist specializing in SaaS pricing and monetization strategy. Helping startups and scale-ups optimize their pricing for maximum growth.

Learn more about Sarah →

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