Why it matters
Applied to pricing, a 5 dollar rise is noticed on a 20 dollar product far more than on a 200 dollar product, so price increases should be sized relative to the current price.
Glossary // W
The Weber-Fechner law says that the smallest noticeable change in a stimulus is proportional to its starting size.
Applied to pricing, a 5 dollar rise is noticed on a 20 dollar product far more than on a 200 dollar product, so price increases should be sized relative to the current price.