| I agree that financial ignorance keeps Americans in debt, but I don't think that blindness to savings is a major component. Just look at JCPs recent situation - they tried to eliminate sales, implementing consistent, standard pricing on all merchandise (instead of the previous mark-up-to-mark-down method), and consumers hated it. The metrics were a disaster. If the JCP numbers are any indication, consumers know the price of everything and the value of nothing - they'd rather pay more than they should after a fake 40% discount because "full price is for suckers", regardless of the actual quality:price value ratio. The problem with cable pricing isn't that consumers are ignorant to the deals - they're most certainly eyeing price and discounts. It's that cable companies have established a false baseline to decrease the effectiveness of cord-cutting. As a pricing strategy, it's nothing new. You can get 2 liters of soda for 99c, and a 12 oz bottle for 1.50. It's a psychological price bump - not based on value, but manufactured to steer the "savvy" (read: performing as expected) buyer to the "smart" (read: preselected) choice. It's just a little more disheartening when its application moves from soft drinks to the spread of human knowledge. |
Usually it's $1.50 for a chilled 12 oz bottle, and $0.99 for a warm 2 liter. It's a convenience charge.