13
Apr
15

Why an Apple Watch that costs tens of thousands of dollars ?

On many online forums people are asking how Apple can justify an item that will last maybe two years that costs as much as a car. The answer is “Anchoring and the contrast principle”.

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We can not help ourselves – the stupidly expensive watch makes the cheapest one look cheap (which it is not). The Middle priced one has the same effect of people looking for value.

The whole pricing structure is designed to optimize revenue and is based on good science.

More reading:

http://conversionxl.com/pricing-experiments-you-might-not-know-but-can-learn-from/

https://www.brocku.ca/MeadProject/Sherif/Sherif_1958b.html

http://en.wikipedia.org/wiki/Prospect_theory

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