Why do businesses often charge the same price for very different products?

In this episode of Research Matters, we examine new research from UWM's Zuhui Xiao on class pricing and the psychology of consumer decision-making. The study suggests that loss aversion and price comparisons can make fewer price points more effective than highly customized pricing, even with modern AI tools. [xiao-2026-...ss-pricing | PDF]

Research Featured

Consumer-Driven Class Pricing by Zuhui Xiao, Marketing Science (2026). DOI: 10.1287/mksc.2023.0133. [xiao-2026-...ss-pricing | PDF]

Produced by the University of Wisconsin-Milwaukee Division of Research. Audio production may include licensed music, sound effects, and content created with Adobe Creative Cloud tools.