We spent our last lecture talking about pricing, from basic concepts and factors, to the various pricing strategies. Now I want to draw your attention back to one topic, psychological pricing, and a related concept anchor pricing or more simply put anchoring. This concept is at the center of a recent book on pricing Priceless: The Myth of Fair Value (and How to Take Advantage of It), by William Poundstone. For this assignment, you will have to read the book review recently published in Business Week. After reading the page-long article, you have to write a short reaction (a minimum of 10 lines). Then, think about when you encountered anchoring while shopping or maybe in another setting. Analyze and recount that experience in detail. Why was it anchoring? Why did it work on you?
Click here to start reading the review. Once you are done reading, return to this post to complete the assignment. When you have a chance, I strongly encourage you to read the entire book. It is an easy read and can help you become a smarter shopper & seller.
Points: 20
Deadline: Friday, March 26th, 11:59pm.
