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Saturday, April 10, 2010

Why I chose Jumbo ?

While i was busy hunting for a print out shop near M G road,I came across Kaati zone, Respecting my love for food, I hopped in. Its a Quick serve restaurant serving rolls in Indian style. The store basically serves Indian snacks with a limited menu. The rolls were the main offering and it had roll priced in three sizes. I wasnt feeling hungry but i landed up eating the jumbo roll ?? how ? check out the prices below
  • Mini 45
  • Regular 55
  • Jumbo 65
The difference between the prices of these three was only Rs 10 and this difference was clearly shown in the menu. It was interesting to see how consumers at the counter upgraded their decision of purchase when they saw the difference in prices and everyone almost upgraded to the next bigger size of the roll as the difference was less and greed for a bigger roll dictated their purchase.

This is a smart tactics employed by Kaati zone to lure customer to upgrade their purchase. In marketing terms its referred as psychological pricing, Means adopted to maintain the price below the absolute threshold level of the consumer. Here the threshold was Rs 10, had the difference in price been above the threshold of the customer ? he wouldn't buy the bigger size as its expensive. Bata has mastered the art of psychological pricing in India with its prices like 549, 689, 999. The reason why this works is due to the way human brain reads numbers. The human mind processes the digits from left to right . so when the customer checks out that the first digit is lower than what the normal or expected price Is. He would psychologically buy in the idea that its cheap.

Review of kaati Zone

The Food Klub guy outside my college makes better rolls than kaati Zone :)

3 comments:

Sumanta Roy said...

Nice post Yogi. This jumbo example reminds me of Ray Sir's class where he had shown a TED video by Dan Ariely. I think the topic was 'predictable irrationality' or something like that. (You remember the magazine subscription offer example?)

Even I took the jumbo mutton roll for Rs 95 (!!!). It was tasteless and full waste.

yogesh patel said...

@sumanta ya i remember that video..
even vineeth ordered for a jumbo roll. :)

Vineeth Gangadharan said...

Insightful! Although my purchase decision was influenced by the fact that i was super hungry,their pricing strategy only reinforced it...