How to Raise Prices without Making Users Mad
The session will apply behavioral economic principles to the pricing of park and recreation services. The essential concepts of adaptation level theory, assimilation-contrast theory, reference price theory, and prospect theory which provide the framework for these principles will be explained. To reconcile inconsistencies with reference price, five strategies are available; the effectiveness of providing quality in cost information to accomplish this will be described; and eight strategies informed by prospect theory will be developed. These heuristics are the tools managers have to remove any angst that is likely to emerge in response to price increases.