Brands 'will price products based on social media chat'

Brands are likely to indulge in behavioural pricing this year, where the cost of products is set depending on social media chat and other consumer trends.

That is the opinion of Olly Mann, the gadget and games columnist for Reader's Digest, who said this pricing tactic will come to the fore in 2012, especially as friends increasingly talk to one another via social media websites such as Facebook and Twitter.

Businesses can therefore hike up or decrease the prices of their products depending on how much they discover consumers would be willing to pay. Indeed, one of the main reasons some companies have a social media presence is so they can gauge these types of opinions from individuals, he asserted.

When it comes to whether organisations reveal their cost-setting strategies, Mr Mann stated: "I think it very much depends on whether the product is more expensive because of behavioural pricing or whether it's cheaper because they're a regular customer."

So, if lots of shoppers 'like' a product, a company might decide to hike up the price due to its popularity. Of course, businesses need to assess whether its high number of 'likes' comes from its affordability.

House of Fraser is currently harnessing the power of Facebook by offering a ten per cent online discount to students who 'like' its page on the social media website.

What pricing tactics do you engage in at your business?