4 ms·
I had a CEO once tell us the story of previous work in the pet food industry. They had a food product that had low sales and they wanted to discontinue the pro
by dade_ 10y ago
I had a CEO once tell us the story of previous work in the pet food industry. They had a food product that had low sales and they wanted to discontinue the product. He did what seemed obvious and raised the price.
Sales went up. Customer surveys indicated they thought it was a premium product.
- ashark 10y agoThe very first anecdote (IIRC) in Cialdini's Influence is about exactly that effect. Seems to happen most when people don't have a good way to evaluate product quality (which is most of the time, really—consumers with the time and information access to be well-informed about more than a tiny fraction of what they buy is a first-week-of-Econ-101 fiction, like physics' "spherical pig" but even less connected to reality)
- pmiller2 10y agoI would think the obvious thing is to stop shipping the product, isn't it?