EP 45: The Psychology of Pricing: Value vs Perception in eCommerce
In this episode of the ASOM Pod, hosts Jimmy Kim (CEO of eCom Email Marketer, formally Founder of Sendlane), John Roman (CEO of BattlBox), Amer Grozdanic (CEO of Praella), and special guest: Greg Dalby (SVP eCommerce at The Woobles) unpack one of the trickiest levers in brand strategy: pricing.
They break down real-world examples of brands like Champion, Milk Bar, Hyundai, and Sharper Image, diving into the psychological vs. economic pricing debate and what it means for perceived value, brand equity, and long-term growth. If you’ve ever wondered whether your price tag is helping or hurting your brand—this one’s for you.
What You’ll Learn in This Episode:
- Why pricing is about psychology, not just profit margins
- What happens when premium brands go mass market (and lose their edge)
- How Fender uses customer feedback and performance metrics to price smart
- The merchandising + procurement loop that protects premium perception
- Insights from The Handbook of the Psychology of Pricing you’ll actually use
If you’re building a brand people aspire to buy into—not just bargain-hunt from—hit play and take notes.
Big shoutout to our sponsors who make this podcast possible!
Omnisend — With 125,000+ eCommerce merchants, Omnisend is the all-in-one email & SMS marketing platform built to deliver seamless, personalized experiences via email and sms with ease. Learn more at https://www.omnisend.com/
Alia — An app that is revolutionizing how brands turn website visitors into loyal customers. With some of the highest performing pop ups in eCommerce, Alia is helping brands ditch traditional webforms and double down on education, personalization and conversion. We highly recommend you check out: https://www.alialearn.com/
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00:00 Teaser Trailer
00:47 The Toilet Paper Conundrum
02:33 Welcome to the ASOM Pod
03:12 Special Guest Introduction
06:23 The Psychology of Pricing
17:36 Subscription Pricing Strategies
33:19 Economic vs. Psychological Pricing
37:04 Psychology of Pricing in Subscription Services
39:27 The Role of Merchandising Teams
41:04 Procurement and Product Testing Process
42:03 Customer Feedback and Retention Strategies
47:52 Brand Evolution: From Cheap to Premium
47:57 Case Studies: Champion, Hyundai, and Juicy Couture
59:24 The Rise and Fall of Sharper Image
01:03:16 Book Review: Handbook of Psychology of Pricing
01:11:39 Conclusion and Next Episode Preview