Rafi Mohammed

HBR Digital Article: Are You Really Getting a Discount or Is It Just a Pricing Trick?

Posted on March 23th, 2016 (0 Comments)

How many of us believe “list” or “original” prices are meaningful, in any way, to consider when making a purchase? Most of us are dubious of their veracity…but somehow seeing a higher such reference price brings us comfort. In the best light, reference prices (list, original, manufacturers suggested, etc.) are aspirational and at the worst, well, deceptive.

While it’s easy to shrug off misleading reference prices with a “caveat emptor,” I don’t think we should condone this chicanery. In their current form, reference prices provide no practical benefit to consumers. Please check out my latest piece for the Harvard Business Review which discusses reference prices and provides a prescription to make them more meaningful.

As always, thank you for dropping by to read my blog!  

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