From the course: The Undercover Economist: The Economics behind Everyday Decisions (Blinkist Summary)
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The maximum amount
From the course: The Undercover Economist: The Economics behind Everyday Decisions (Blinkist Summary)
The maximum amount
- [Narrator] Blink number two. Companies use many strategies to make us pay as much as possible for their products. Every company's goal, no matter how nice they seem, is to get you, the customer, to pay the maximum amount that you're willing to pay for a given product, and they use several pricing strategies in order to accomplish this. Obviously, they can't just ask you what your maximum payment would be. They'd never get a straight answer. So companies have to employ sneakier methods. One way is to offer you a range of slightly different products that all cost roughly the same amount to produce, yet are priced differently. Companies like Starbucks, for example, do this. Rather than offering a single type of coffee, they offer a variety of caffeinated products at different prices. For instance, you can get a large coffee with extra cream for $1 more than a small coffee with no frills. By providing options, they…
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