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There must be a name for this psychology: “Product A is great value and product B is more expensive than (or same as) product A therefore product b is bad valu

There must be a name for this psychology: “Product A is great value and product B is more expensive than (or same as) product A therefore product b is bad value and I won’t buy it.” The ROI or otherwise of a product is not related to the first one. Unless your budget is so limited it’s either-or, why is this fallacy so prevalent?

prepend 6y ago
First, anchoring is very real and humans judge things in comparison to others, especially when compared to unclear things. I think that fairness is a factor in pricing and it’s not just an ROI calculation. It’s like those epi pens that went up in price right? From an ROI perspective it’s great because you pay $400 and get to live. But know it costs little makes me think it’s less just. Relative ROI is also important as we have to prioritize. GitHub seems a much better value to cost than this tool. It’s perfectly fine for them to price however they like and it seems from their site that lots of companies pay this.
- randomsearch 6y ago
  > First, anchoring is very real and humans judge things in comparison to others, especially when compared to unclear things. This isn't anchoring in the true sense, though. That's my point. It's like saying "my car costs £10000 and my house is £300 000 and my car goes everywhere so this house is a rip off". It's apples and oranges. People are being irrational about software purchases because MS etc. are cheap. > It’s like those epi pens that went up in price right? it isn't, because the price of the SaaS hasn't changed. > Relative ROI is also important as we have to prioritize. GitHub seems a much better value to cost than this tool. For something that costs tens of dollars per month for a company that employs software developers, there is zero debate about whether they can afford it. Provided ROI > cost, why on earth wouldn't you? This just seems like irrational behaviour caused by the fact that software has near zero marginal costs and most people don't understand that.

prepend 6y ago

First, anchoring is very real and humans judge things in comparison to others, especially when compared to unclear things. I think that fairness is a factor in pricing and it’s not just an ROI calculation. It’s like those epi pens that went up in price right? From an ROI perspective it’s great because you pay $400 and get to live. But know it costs little makes me think it’s less just. Relative ROI is also important as we have to prioritize. GitHub seems a much better value to cost than this tool. It’s perfectly fine for them to price however they like and it seems from their site that lots of companies pay this.

randomsearch 6y ago
> First, anchoring is very real and humans judge things in comparison to others, especially when compared to unclear things. This isn't anchoring in the true sense, though. That's my point. It's like saying "my car costs £10000 and my house is £300 000 and my car goes everywhere so this house is a rip off". It's apples and oranges. People are being irrational about software purchases because MS etc. are cheap. > It’s like those epi pens that went up in price right? it isn't, because the price of the SaaS hasn't changed. > Relative ROI is also important as we have to prioritize. GitHub seems a much better value to cost than this tool. For something that costs tens of dollars per month for a company that employs software developers, there is zero debate about whether they can afford it. Provided ROI > cost, why on earth wouldn't you? This just seems like irrational behaviour caused by the fact that software has near zero marginal costs and most people don't understand that.