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How do consumers process and evaluate prices

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Vaishnavi Ketharnathan
Vaishnavi Ketharnathan

With the help of this slide,one can learn about consumers' psychology towards prices

Marketing
1 of 11
HOW CONSUMERS INTERPRET PRICES
Price produces Revenue
Factors in making Pricing Decisions
A CHANGING PRICING ENVIRONMENT Instant price comparisons Name their price and have it met Get products free “Giving it All Away”
A CHANGING PRICING ENVIRONMENT Monitor Customer Behavior Give special prices Negotiate prices
Consumer Psychology and Pricing Blue Denims are Blue Denims for both Armani and Levis !!!
Reference Prices
Possible Consumer Reference Prices Fair Price Typical Price User Discounted Price Last Price Paid Historical competitor Price Expected Future Price
Price-Quality Inferences -luxury products
Price Endings “9”endings suggest a discount or bargain “Sale” sign next to Prices spur demands
Created by Subhasis Panda, IIT Bombay, during an internship by Prof.Sameer Mathur, IIM Lucknow www.IIMInternship.com

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How do consumers process and evaluate prices