Toastmasters is a way of learning and perfecting the art of one's public speaking abilities, especially if you have your eye on the ball! I actually based this speech on the research work of Ryan Hamilton and Alexander Chernev entitled; “Low Prices Are Just the Beginning: Price Image in Retail Management”

1. Speech No.7
Article Title: “How Consumers Understand (and Misunderstand) Pricing Cues” by
the HBR April 2015 Issue
Based on academic study by Ryan Hamilton and Alexander Chernev entitled; “Low
Prices Are Just the Beginning: Price Image in Retail Management”
Wednesday, July 1, 2015

2. True or False … ?
Giant suburban stores with tacky
displays always have the best
prices; just as urban stores with
beautiful gourmet sections have
the highest ones?

3. “
”
… suggest that people persist in
believing these stereotypes, even
though they’re not always true
New Research publication in the Harvard Business Review,
April 2015 Issue

4. Signals retailers need to
understand and manage in
order to avoid sending
incorrect signs
 High volume equals low cost:
 Signals of store moving lots of products;
 Location
 Size in square footage & large assortment
 Stock-outs
 Frills equal high cost:
 Feelings of paying for anything extra;
 Beautiful décor & well-organized displays
 Well-trained employees
 A high staff-to-customer ratio
 Extended business hours
 A generous returns policy
 A prominent social-responsibility strategy
 Unconventional products equal high cost:
 Assumption that even store’s mainstream goods have steep
prices;
 Quirky, specialized, or highly designed items, signifies high price
to consumers as supposed to..
 Unadorned functionality with low prices

5. Why understand these pointers?
 Competition against others;
 physical retailers and online sellers…
 whose prices can be quickly checked on a smart devices (e.g. phone)
 And working on the pricing pointers may be nearly as important as actually
lowering prices.

6. Thank you!