Diminishing Marginal Utility and Fresh Baked Brownies

Fresh-baked brownies illustrate the concept of diminishing marginal utility and how pricing to increase demand despite that.
  1. Home
  2. Blog
  3. Diminishing Marginal Utility and Fresh Baked Brownies

Diminishing Marginal Utility and Fresh Baked Brownies

  • Apr 18, 2017
  • admin

Understanding diminishing marginal utility is essential to effective pricing. The good news is that it sounds far more complicated than it is. The concept, and the pricing models used to maintain demand in spite of it, can be illustrated by looking at the enjoyment you get from a plate of fresh brownies.

Share:
Real World Pricing: At the Movies
Beyond Cost Plus at the Great Lakes Floral Expo

More Entries...

Aggressive Example Of A Stealthy Price Increase
Jul 23, 2019, 2:21 AM
When "Free" Really Just Means Different (And More Expensive)
Jul 9, 2019, 2:22 AM
Proof There Is More To Pricing Than A Cost-Plus Formula
Jun 25, 2019, 1:06 AM
Anchoring: So Powerful It's Worth Risking Lawsuits
Jun 11, 2019, 1:11 AM
More Money For Less Car? It Depends On What You Value
May 28, 2019, 1:12 AM
Pricing Attraction Tickets and Bundles
May 14, 2019, 1:16 AM
Diminishing Marginal Utility, Anchor Pricing & Attraction Tickets
Apr 30, 2019, 1:19 AM
Making Prices Seem Smaller Than They Are
Apr 16, 2019, 1:20 AM
Other Benefits Of (And Approaches To) A Loss Leader Strategy
Apr 2, 2019, 1:21 AM
Stated vs. Revealed Preferences in Pricing
Mar 19, 2019, 1:22 AM

Search