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1.consumer psychology

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Sameer Mathur
Sameer Mathur

This is a presentation based on the text book 'Marketing Management' by Philip Kotler. It describes about developing pricing strategies and programs.

Marketing
1 of 17
How do consumers process and evaluate prices??
What is Price? An element of marketing mix that produces revenue
Consumer Psychology Key in understanding consumer's way of processing and evaluating price
Processing price information • Prior purchasing experience • Formal communications • Informal communications • Price variations • Point-of-purchase • Online resources
Set of blue denims ₹499/unit Cheap Fashion ₹2499/unit Craftsmanship Lifestyle ₹10499/unit Exclusivity Status Street Levis Armani
Reference Prices Often employed by consumers while choosing products
Possible Reference Prices • Fair price • Typical price • Last price paid • Upper and Lower bound price • Competitor prices • Usual discount price • Expected future price
Price-Quality Inference
Lower price instincts cheap quality
Price endings
Customers process the prices left-to-right rather than by rounding
Number psychology • Ending with 9 suggests a discount or bargain • Prices ending with 0 and 5 are also popular • 9 influences customers with poor price knowledge
Recap-Customer psychology • Reference prices • Price-Quality inferences • Price endings
References and Credits • Marketing management – Philip Kotler • https://support.content.office.net/en- us/media/07ec15ce-0c1d-4089-a5b6- d106f7b0c7d1.gif • http://www.astrogle.com/images/2014/09/number- 97.jpg • http://blog.timesunion.com/momsatwork/files/2013/ 11/blue_jeans1.jpg • https://www.flickr.com/search/?text=left%20to%20r ight • http://www.h3dwallpapers.com/wp- content/uploads/2014/09/Spicejet_logo-4.jpg
Disclaimer Created by Mohith Reddy, IIT Madras during an internship by Prof. Sameer Mathur, IIM Lucknow. www.IIMInternship.com
1.consumer psychology

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1.consumer psychology