Hundreds of behavioural biases have been discovered, highlighting the many ways in which people act irrationally. Here are a few that marketers can harness to maximise the chances of their brand being chosen.
Price relativity. People want to feel they are getting a good deal but do not evaluate a product's value to them in an absolute way. Instead, they compare the price with other products they think are similar. In this example, the Minolta 3000i seems expensive in the first scenario but reasonably priced in the second scenario. This is why having an ultra-expensive 'deluxe' product in your brand's range can make your premium product feel like the best option.
Price context. If Nespresso had positioned itself as a superior alternative to supermarket coffee, the price premium would have made it seem extremely poor value. However, by pitching itself as a convenient alternative to coffee shop coffee, Nespresso capsules were seen as great value.
How price shapes perception. The price of a product or service has a huge influence on the quality people expect from it and on how they rate it after having tried it. In this experiment by Richard Shotton (see 'The Choice Factory'), simply raising the price of one of products dramatically resulted in it receiving much higher quality ratings from people who tried it.
See also: Examples of Behavioural Biases (1), Examples of Behavioural Biases (3) & Cognitive Biases Marketers Need to Know About