“When examining prices, shoppers focus on the relative differences of the price. This leads to a lower-price perception when it is in a set with more expensive products, and to a higher-price perception when it is in a set with less-expensive ones.”
Shoppers tend to perceive products as more expensive when they are grouped with expensive items, and less expensive when grouped with inexpensive ones.
Displays that elicit a "generalization mindset" can lead shoppers to perceive a product price to be closely related to other products in the vicinity.
The opposite – “discrimination mindset” - occurs ifshoppers are encouraged to think about the uniqueness of a product in the set. When shoppers are discriminating, a given price is perceived as less expensive if it is viewed in the presence of other high-priced products, and more expensive when grouped with less expensive ones.
SO WHAT?
To put shoppers in a discrimination mindset, use a display strategy for a new high end product that emphasizes how it is different from its competitors.
