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The Washington Post recently published an article about travel websites practicing “drip pricing”—drawing in a customer by advertising a low price, but then adding fees so the final price is no longer a deal.
Jennifer Talarico, professor of psychology, shared why offering an initial low rate can be an effective strategy. “It’s a conceptual foundation to which all subsequent prices will be compared,” she told the paper. “Most folks will think it’s only a little bit more than what they’ve already internally committed to paying.”