1. How do consumers process and evaluate prices? (Chapter 13) (Anurag Kar)

•

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Sameer mathur

Based on Chapter 13 of Marketing Management: A South Asian Perspective by Koller, Ketler, Koshy and Jha.

Marketing

How do consumers process
and evaluate prices?

Customers today have many ways
of differentiating between sellers
because of
THE INTERNET

Buyers today can:
1. Get instant price comparisons between vendors.
2. Name their price and have it met.
3. Get products for free.

Earlier
Buyers were “price takers”.
They accepted prices at face value.

Now..
Buyers process various
information and access various
options.

Let’s understand consumers’
perception of prices with the help of
3 sub topics

Consumers often can’t accurately
recall specific prices.
While examining products, they
employ reference prices.

They compare an observed price to
an internal reference price or
external references such as
“posted retail price”.

Consumers often use price as an
indicator of quality.

₹ 3000
It’s so
sophisticated.
It has to be
good.
Wow!
This shirt is so good.
Because it’s
expensive.

₹ 300
It’s so
dull.
It’s cheap.
Ew!
This shirt is bad.
Cheap shirts
are never good.
.

Many sellers believe in ending
prices with a ‘9’.
Such as ₹ 299 or ₹ 499 for a
commodity.

This is because people tend to
process prices from
₹ 2 9 9Left Right

₹ 2 9 9
Ends up being in
the 200 range
Rather than the
300 range.

Companies who want to portray an
expensive image on the other hand
should AVOID such pricing because
of the risk of looking cheap.

Pictures Sourced from:
www.flickr.com
www.pinterest.com
http://commons.wikimedia.org
www.theguardian.com
Fonts Sourced from:
www.fontsquirrel.com
Based on “Marketing Management: A South Asian Perspective”
By Kohler, Kelter, Koshy and Jha
Credits

In a world of proliferating choices, how do you get customers to choose your product? Providers in telecom and technology industries do not only struggle with rapidly changing markets and fierce competition, but also with increasingly demanding customers who have a multitude of options at their fingertips. Do you give your customers full freedom of choice allowing them to create their individual product or do you present them with selected predefined packages?

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1. How do consumers process and evaluate prices? (Chapter 13) (Anurag Kar)

1. How do consumers process and evaluate prices?

2. By, Anurag Kar B.Tech. Student Department of E and ECE IIT Kharagpur Based on Chapter 3: Developing Pricing Strategies and Programs Of Marketing Management: A South Asian Perspective By Kotler, Keller, Koshy and Jha

3. Customers today have many ways of differentiating between sellers because of THE INTERNET

4. Customers Then Now

5. Buyers today can: 1. Get instant price comparisons between vendors. 2. Name their price and have it met. 3. Get products for free.

6. Examples

7. Earlier Buyers were “price takers”. They accepted prices at face value.

8. Now.. Buyers process various information and access various options.

9. Let’s understand consumers’ perception of prices with the help of 3 sub topics

10. Reference Prices

11. Consumers often can’t accurately recall specific prices. While examining products, they employ reference prices.

12. They compare an observed price to an internal reference price or external references such as “posted retail price”.

13. Price – Quality Inferences

14. Consumers often use price as an indicator of quality.

15. ₹ 3000 It’s so sophisticated. It has to be good. Wow! This shirt is so good. Because it’s expensive.

16. ₹ 300 It’s so dull. It’s cheap. Ew! This shirt is bad. Cheap shirts are never good. .

17. Price Endings

18. Many sellers believe in ending prices with a ‘9’. Such as ₹ 299 or ₹ 499 for a commodity.

19. This is because people tend to process prices from ₹ 2 9 9Left Right

20. ₹ 2 9 9 Ends up being in the 200 range Rather than the 300 range.

21. Companies who want to portray an expensive image on the other hand should AVOID such pricing because of the risk of looking cheap.

22. Recap

23.

24.

25. Pictures Sourced from: www.flickr.com www.pinterest.com http://commons.wikimedia.org www.theguardian.com Fonts Sourced from: www.fontsquirrel.com Based on “Marketing Management: A South Asian Perspective” By Kohler, Kelter, Koshy and Jha Credits

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