Psychological moments in siro-oriented price formation
When setting and changing the list price of the goods on the market (mainly on the consumer market), it is necessary to take into account important elements of the psychology of price perception. The psychological models include the following.
• The model of an ultra-high price for a prestigious product. Unique product innovations are usually positioned as a product of prestigious demand and for some time are addressed to a segment of super-rich buyers. Accordingly, an ultra-high yen is established. The profit at such a price can be hundreds or even thousands of percent. Paradoxically, this category of customers is pleased with the high price level. Unavailable for most price allows you to stand out. This effect is called the Veblen effect , in honor of the author of the concept of demonstrative behavior. The Veblen effect occurs when goods are purchased in order to make an indelible impression on others. The price of the goods in this case consists of two components: its real value and prestigious. The effect of Veblen is understood as the effect of increasing consumer demand, associated with the establishment of a high price for goods. A consumer experiencing Veblen's effect is guided by the acquisition of such goods that would testify to his high social status.
• Price bare product model. Used for high-tech durable goods with a set of additional improvements or mandatory accessories. In the presence of additional improving elements, it is necessary to separately set the price for the basic product and for the improving elements. If you have the necessary supplies (for example, consumables when using a computer printer) for a basic product, the price is set low, and the mandatory accessories and related services are high.
• Perception of non-round endings. Another factor that influences the perception of price difference buyers is the use of non-round numbers. So, it's been noticed for a long time that the price is 98 rubles. much more attractive than 100 rubles. And the goods for 995 rubles. is sold better than 1000 rubles.
However, the use of non-round endings does not always give the expected effect: their influence varies in different market situations from a significant to a zero. The fact that non-circular prices are effective only for goods that are purchased quickly (for example, grocery and gastronomic goods), and inefficient for goods, the decision to purchase which takes a long time.
• The effect of falling demand with a decline in price. With a decline in the price of the goods, you can face a drop in demand. If the firm has not explained its pricing policy with the help of advertising, the fact of price reduction can be interpreted in different ways: the price has gone down due to the deterioration of the quality of the goods; prices began to decline - wait, when it becomes even cheaper; the price was lowered in connection with the appearance of a new, more perfect model of the product - it is necessary to sell out a morally outdated model; The price reduction is a sale before the company leaves the market. The goods will not provide after-sales service.
• Perceptions of percentage differences. If consumers were perfectly rational in their reactions to price differences, the same absolute price difference would always generate the same behavioral reaction. However, the facts show that this is not always the case. Consider two situations:
Situation 1. You ordered a washing machine in the store for $ 600. On the way home from the store you meet your friend who says that you can buy a similar car for $ 360, in another store.
Situation 2. You ordered a car for $ 12,000 in the car showroom. On the way from the cabin home, you meet your friend who says that you can buy a similar car for $ 11,760, in another showroom.
Question: all else being equal, in which of the two situations would you cancel the current order and make a new one in another store? Since in both cases you can save $ 240, an entirely rational buyer would have made the same decision in both cases. The reality shows that when answering this question, 89% of business people (the survey was conducted among them, since it is assumed that they are more rational than other groups of buyers) would agree to change the seller in situation 1 and only 52% would be willing to enter so in situation 2. The reason for such differences is that $ 240, when you buy at $ 600, is 40% of the price, and when you buy at $ 12,000, only 2%.
The buyers' inclination to assess price differences relative to the base price level is known as Weber - Fechner . This law states that buyers perceive price differences in percentage terms differently than in absolute terms. According to the Weber-Fechner law, in order for the price difference in situation 2 to be perceived the same as the similar price difference in situation 1, the price of a car from a competing seller in the second situation should be at least $ 7,200, i.е. 40% less than the more expensive offer for $ 12,000.
The important value of the Weber-Fechner law is that the perception of price changes depends on the differences in percentage, not in absolute terms, and that there are limits to the upper and lower price of the commodity, when the price changes are not observed or ignored. A series of small price increases to the upper limit will be more successful than one big rise. Conversely, buyers will respond better to one large drop in prices to the lower limit, rather than to a series of small consecutive discounts.
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