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https://theconversation.com/junk-fees-and-drip-pricing-the-underhanded-tactics-we-hate-yet-still-fall-for-211117>
"You see a fantastic offer, like a hotel room. You decide to book. Then it
turns out there is a service fee. Then a cleaning fee. Then a few other extra
costs. By the time you pay the final price, it is no longer the fantastic offer
you thought.
Welcome to the world of drip pricing – the practice of advertising something at
an attractive headline price and then, once you’ve committed to the purchase
process, hitting you with unavoidable extra fees that are incrementally
disclosed, or “dripped”.
Drip pricing – a type of “junk fee” – is notorious in event and travel
ticketing, and is creeping into other areas, such as movie tickets. My
daughter, for example, was surprised to find her ticket to the Barbie movie had
a “booking fee”, increasing the cost of her ticket by 13%.
It seems like such an annoying trick that you may wonder why sellers do it. The
reason is because it works, due to two fundamental cognitive biases: the way we
value the present over the future; and the way we hate losses more than we love
gains."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
