Explain how pricing is related to psychology, describing how at least two pricing practices that appeal to customers on a psychological level
What will be an ideal response?
Pricing strategy depends on how people make purchase decisions, a process that is not always rational. Two examples of pricing practices that use psychology are odd-even pricing and price bundling. Using odd-even pricing, a marketer sets prices at fractional numbers instead of whole ones. Research has shown that consumers will buy significantly more of an item at $9.99 than at $10.00, even though the difference is only one cent. Using price bundling, a marketer makes two or more products appear more attractive at a single price than at two separate prices. The price bundle may offer a discount, or it may offer relief from the effort of product search and price evaluation for multiple items.
You might also like to view...
Salespeople should familiarize themselves with the company's price, discount, and credit policies so that they can use them as a competitive advantage.
Answer the following statement true (T) or false (F)
Questions such as "What business are we in?" and "What customers should we serve?" are typically addressed in the ________ stage
A) operational planning B) strategic planning C) market targeting D) functional planning E) marketing planning
According to the text, the extent to which an IC relies on subsidiary management to make decisions depends on all of the following except:
A. how profitable the IC is. B. the distance between the home country and the host country. C. how large the IC is. D. how well the executives know company policies.
The International Court of Justice is composed of 15 judges who serve nine-year terms
Indicate whether the statement is true or false