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  1. Behavioural Science for Marketers
  2. Module 11 - The Psychology of Prices and Promotions
Module 11 - The Psychology of Prices and Promotions

Module 11 - The Psychology of Prices and Promotions

Behavioural Science for Marketers · Aug 3, 2026

Promotions aren't just about price. This deep dive reveals the psychology, cognitive biases, and emotional triggers that drive our purchases.

Retail Displays Should Target Peripheral Vision with Shapes and Focused Vision with Text

Peripheral vision, which is primitive and subconscious, cannot read words but responds to shapes and colors. These elements should grab a shopper's attention, drawing their sharp, focused foveal vision to read the specific details of an offer on the packaging or price tag.

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Module 11 - The Psychology of Prices and Promotions

Behavioural Science for Marketers·a day ago

Introduce a 'Decoy' Price Option to Make Your Target Offering Seem More Valuable

Adding a third, less attractive 'decoy' option to a choice set can dramatically shift consumer preference towards a higher-priced target option by making it seem superior by comparison. This choice architecture trick can significantly boost revenue even if the decoy itself is never chosen.

Module 11 - The Psychology of Prices and Promotions thumbnail

Module 11 - The Psychology of Prices and Promotions

Behavioural Science for Marketers·a day ago

Loyalty Programs See Higher Completion When Customers Are Given a Head Start

Due to the 'endowed progress effect,' providing customers with artificial progress toward a reward from the beginning makes them feel more invested. A 10-purchase card with two pre-filled stamps will significantly outperform an 8-purchase card that starts empty, increasing program completion.

Module 11 - The Psychology of Prices and Promotions thumbnail

Module 11 - The Psychology of Prices and Promotions

Behavioural Science for Marketers·a day ago

Prices With Fewer Syllables Are Perceived as Cheaper Due to Cognitive Fluency

The brain subconsciously perceives prices that are easier to say (i.e., have fewer syllables) as being lower in value. This is because they require less mental effort to process. For example, 'nineteen ninety-nine' feels more expensive than a price with fewer syllables, regardless of the actual numerical value.

Module 11 - The Psychology of Prices and Promotions thumbnail

Module 11 - The Psychology of Prices and Promotions

Behavioural Science for Marketers·a day ago

Use the 'Why-Why Game' to Uncover the True Emotional Drivers Behind Purchases

To understand the real reason for a purchase, repeatedly ask 'why' in response to a consumer's stated motivations. This qualitative research technique peels back layers of rationalization (e.g., 'it was on offer') to reveal the core emotional driver (e.g., 'to show my love').

Module 11 - The Psychology of Prices and Promotions thumbnail

Module 11 - The Psychology of Prices and Promotions

Behavioural Science for Marketers·a day ago