1. Pricing for new product introductions Adapted from AdPrin.com

2. Mouthwash You are introducing a new brand of mouthwash in a discount store. Would you advertise ______ a low introductory price or ______ sell it at its listed price? Why? Adapted from AdPrin.com Go to the next slide for the answer. 2

3. You should sell it at its listed price because if people made their original purchases of this credence product at stores with the low price, they might later conclude that they purchased it only for the price, not because it was of good quality (Persuasive Advertising p 55-56). Evidence The low-price product sold more during the introduction phase, but once the regular price kicked in, it sold much less. Similar findings were obtained when this was done with four other products (Doob, et al. 1969). Additional evidence in Persuasive Advertising p 56-57).

4. Minimize price information for new products (Principle 1.4.13) As noted, you want customers to conclude that they bought the new product because it was a good product, not because it was cheap. To learn more, go to AdPrin.com

5. Based on this exercise, write a small application step for yourself, and set a deadline, preferably within one week. If you are working with someone else, share your application plan and the results of your application. Adapted from AdPrin.com