Examples of psychological pricing in the following topics:
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- Psychological pricing or price ending is a marketing practice based on the theory that certain prices have a psychological impact.
- Psychology is an academic and applied discipline that involves the scientific study of mental functions and behaviors.
- Psychological pricing or price ending is a marketing practice based on the theory that certain prices have a psychological impact.
- The retail prices are often expressed as odd prices: a little less than a round number, such as $19.99 or £2.98.
- Psychological pricing can be used to the perceived value of a product up as well.
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- Price skimming is a pricing strategy where initially a product price is set very high, but lowered over time.
- Psychological pricing (aka price ending) is a marketing practice based on the idea that certain price have a psychological impact.
- These include: price skimming, price discrimination and yield management, price points, psychological pricing, bundle pricing, penetration pricing, price lining, value-based pricing, geo and premium pricing.
- Psychological pricing or price ending is a marketing practice based on the theory that certain prices have a psychological impact.
- Psychological pricing is one cause of price points.
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- Firms can engage in premium pricing by keeping the price of their good artificially higher than the benchmark price.
- Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price.
- A premium pricing strategy involves setting the price of a product higher than similar products .
- It is also called image pricing or prestige pricing.
- Luxury has a psychological association with price premium pricing.
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- Status quo pricing is the practice of maintaining current price levels that other firms are charging.
- Price-Quality Effect: Buyers are less sensitive to price the more higher prices signal higher quality.
- Status-quo pricing, also known as competition pricing, involves maintaining existing prices (status quo) or basing prices on the prices of competitor firms .
- Status-quo pricing, also known as competition pricing, involves maintaining existing prices or basing prices on what other firms are charging.
- Compare Nagle and Holden's nine laws of price sensitivity with status-quo pricing
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- Competitive-based pricing occurs when a company sets a price for its good based on what competitors are selling a similar product for.
- Competitive-based pricing, or market-oriented pricing, involves setting a price based upon analysis and research compiled from the target market .
- For instance, if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at a higher or lower price, all depending on what the company wants to achieve.
- One advantage of competitive-based pricing is that it avoids price competition that can damage the company.
- Status-quo pricing, also known as competition pricing, involves maintaining existing prices or basing prices on what other firms are charging.
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- Some people distinguish the psychological aspect of brand associations (e.g., thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, etc.) that become tied to the brand from the experiential aspect—the sum of all points of contact with the brand, otherwise known as brand experience.
- The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, service, or company providing them .
- Brands should reflect more than mere differential of product cost versus selling price.
- From the perspective of brand owners, branded products or services also command higher prices.
- Benefits of good brand recognition include facilitating of new product acceptance, enabling market share penetration by advertising, and resisting price erosion.
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- confirming the impact the corporate strategies should have on pricing policy
- (TT Nagle, The Strategies and Tactics of Pricing, Prentice-Han, Inc.
- Englewood Cliffs, N.J., 1999. ) Price sensitivity reduces:
- A gray market comes about when individuals buy products in a lower-priced country from a manufacturer's authorized retailer, ship them to higher-priced countries, and then sell them below the manufacturer's suggested price through unauthorized retailers.
- Questions to consider are: What currency should a company price its products?
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- Differential pricing exists when sales of identical goods or services are transacted at different prices from the same provider.
- Price differentiation, or price discrimination, exists when sales of identical goods or services are transacted at different prices from the same provider.
- This usually entails using one or more means of preventing any resale: keeping the different price groups separate, making price comparisons difficult, or restricting pricing information.
- There are two conditions that must be met if a price differentiation scheme is to work.
- For example, airlines routinely engage in price differentiation by charging high prices for customers with relatively inelastic demand (business travelers) and discount prices for tourists who have relatively elastic demand .
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- You're typically willing to buy less of a product when prices rise and more of a product when prices fall.
- Generally speaking, we find products more attractive at lower prices, and we buy more at lower prices because our income goes further.
- Businesses are more willing to sell a product when the price rises and less willing to sell it when prices fall.
- The supply curve shows that farmers are willing to sell only a 1,000 pounds of apples when the price is $0.40 a pound, 2,000 pounds when the price is $0.60, and 3,000 pounds when the price is $0.80.
- If so, the supply curve would shift, resulting in another change in equilibrium price: The increase in supply would bring down prices.
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- Cost-based pricing involves calculating the cost of the product, and then adding a percentage mark-up to determine price.
- Cost-plus pricing is the simplest pricing method used by companies.
- Cost-plus pricing is the simplest pricing method.
- A firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price.
- The other is direct cost pricing, which is variable costs plus a % markup.