Amazon prime’s success comes from:

- Cognitive harmony: savoir que mon argent a été rentabiliser / satisfaction feeling 
- Experience / convenience (24h, free shipping)
- You’re not locked (you can cancel anytime)
- Several packages (you can pay monthly, annual, student discount)
- Free trial
- Excellent service
- Daily habit
- Safety and convenience.

VALUE: free shipping, competitive prices, video, large choices, amazon days, use’s experience,
personalized ads and suggestions.

Why is price so important?

Depends on the life of the company: pricing too low  lose money, sell too high  no
customers.

perceived value=perceived benefit− perceived cost .

*perceived benefit: social status, convenience, brand, deal
*perceived cost: not only the price, it’s about time, bad service, availability of the product,
limited choices

 Les nombres impairs sont vu moins chers que les nombres pairs.
 Perceived value in WEB + PRINT AFTER DECOY is bigger than either the WEB ONLY or PRINT ONLY.
 Star offer: in the middle

Van khara method:

- At what price point is the product too cheap (  doubting quality)

- At what point is the product cheap with great value?
- At what point is the product expensive?
- At what point is the product too expensive to the point where people won’t consider buying?

Skimming (biggest example Apple): the price decreases with time, or once the company put out another
product (idée de crémage).

Penetration pricing: dumping (btehrou2 el as3ar): initially setting a price lower that the competitors.

Bundles: combine a successful product with one that failed (faire un bundle d’un produit qui ne se vend
pas trop avec un qui a eu trop de succès).