In an earlier post, I explained how a choose what you pay strategy could increase profits. Choose what you pay strategies have mostly been used by charities and artists, however (especially when the product has low marginal cost). I have difficulty understanding how a choose what you pay strategy makes sense for a shoe company–but here you go. You can pay any of three prices and there is no difference in sizing or color by price. True, I have just given them some free advertising but I doubt that explains much. It would be interesting to know how many people choose a higher price. Is it an IQ test? An EQ test? A reading test?
Hat tip: Monique van Hoek.