Product differentiation is exactly what it sounds like - the practice of distinguishing certain products from other ones. It's a psychological pricing strategy that rests on the concepts of product differentiation, comparative pricing, and bracketing.
Goldilocks Pricing is one of the effect's more prominent applications. It applies to elements of psychology, hard sciences, economics, marketing, and engineering - and each one has its own twist on how the principle is applied. The Goldilocks Effect has a place in several fields and disciplines. In the context of pricing, businesses capitalize on the effect by offering three versions of a product at different price points: one high-end, one middle, and one low-end. The Goldilocks Effect - or the Goldilocks Principle - is the premise that people are inclined to seek 'just the right amount' of something. Here, we'll discuss that concept - the Goldilocks Effect - further, see how it manifests itself in practice, and review how you can leverage it, yourself. That concept, rejecting extremes in favor of a just right middle-ground doesn't just apply to young, blonde degenerates, it also shows up in a variety of disciplines - including pricing. Ultimately, she deems the parents' porridge, chairs, and beds as not being to her liking - because she's not just a home-invader, she's also incredibly picky - but she finds all the innocent child bear's possessions as being just right. Once they leave, Goldilocks - a criminal - breaks in, eats from all of their porridge bowls, sits in all of their chairs, and tries to sleep in all of their beds. One day, these three unsuspecting victims go out for a walk. There are three bears, each of whom has its own bowl of porridge, chair, and bed. If you aren't, it's the story of a little blonde girl who commits breaking and entering - a felony - so she can explore a family of talking bears' home, eat their food, break their furniture, and nap where their child sleeps.
Just about everyone is familiar with Goldilocks and the Three Bears.