Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Cheap Price as a Dangerous Signal
Lucas and Luna explore the psychological flip side of discount pricing: why a price that seems too low can actually trigger distrust and avoidance. They examine a 2022 study by Ayelet Gneezy and colleagues showing that consumers perceive lower-priced services as riskier, using examples from dental implants to car repairs. The hosts discuss the 'cheapness paradox' where slashing prices backfires, the role of perceived competence and safety, and how premium brands like Rolex and Porsche use high prices as quality signals. They also touch on the practical implications for startups and…
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