Coupons, Tiers, And “Student Discounts” - Interpreting Pricing Psychology | ARC

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Coupons, Tiers, and “Student Discounts” - Interpreting Pricing Psychology | ARC - SLC

4d ago 55:55

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Price discrimination segments customers by what they value most.

Accounting ARC - Student-Led Conversations
With Harshita Multani
Center for Accounting Transformation

On Accounting ARC – Student-Led Conversations, host Harshita Multani interviews Ron Baker—author, educator, and sought-after speaker—about price discrimination and the psychology behind everyday pricing. Across coffee shops, hotels, streaming platforms, and movie theaters, Baker says the same principle repeats: value is subjective, so pricing must be, too.

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Baker argues that pricing “behaves like art” because people don’t act like predictable particles. The goal is not perfect prediction, but rather constant testing: offering options, observing behavior, and refining strategy. That framing aligns with a growing body of hospitality research that shows how subtle cues—like removing the “$” symbol—change spending patterns. Cornell researchers find diners spend significantly more when menus list numerals without currency signs, a choice many premium venues intentionally make.

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