About This Chapter
Psychology of Price - Chapter Summary
The lessons in this chapter outline the psychological factors that pricing can have on consumers. Each lesson provides relevant illustrative examples to demonstrate the effects of various pricing strategies and consumer perceptions. You'll also see how the placebo effect of price and the endowment effect relate to consumer behavior.
We've included plenty of self-assessment quizzes to help you gauge your comprehension of the material, and each lesson is available 24/7 so you can study whenever it fits your schedule. After studying these lessons, you'll be equipped to:
- Evaluate pricing strategies that marketing managers use to select the correct price for their products
- Explain the effects that prices have on consumer and producers
- Assess consumer perceptions based on the chosen pricing strategy
- Analyze the placebo effect of price and understand how price increases can boost customer satisfaction
- Outline consumers' desire for free products and services and indicate how this desire relates to pricing strategy
- Connect the endowment effect to behavioral economics
1. Price Selection: How Businesses Select the Correct Price for Products
Marketing managers need to select the correct price for their product as part of the marketing mix. The three pricing strategies are price skimming, penetration pricing and status quo.
2. Effects of Prices on Producers and Consumers
In this lesson, we'll take a look at how prices may affect decision making in producers and consumers. The lesson will also define key terms and concepts related to how pricing affects producers and consumers.
3. Pricing Strategy and Consumer Perception
Consumers' perceptions of products rely heavily on the pricing strategy that is chosen by the marketing manager. Price will impact not only consumer perception but also profit and speed of product adoption.
4. The Placebo Effect of Price: Definition & Analysis
So if I pay more, I get more, right? This is the theory behind the placebo effect of price. Most consumers believe that if a product is more expensive, the product must be better. Complete this lesson to learn more about this phenomenon.
5. Consumer Behavior: The Allure of Free
It seems counter-intuitive, but offering free things to customers can actually result in sales. In this lesson, we will look at how consumer behavior is influenced by free samples and trial offers.
6. Endowment Effect: Definition & Example
We all love our things. But when it comes to selling them, what do you feel they are worth? In this lesson, we will learn how we value the things we own.
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Other chapters within the Marketing 302: Consumer Behavior course
- Introduction to Consumer Behavior
- Factors Influencing Consumer Behavior
- Consumers & the Decision Making Process
- Consumer Behavioral Heuristics
- Consumer Buying Behavior
- Microeconomics in Consumer Behavior
- Individual Financial Decision-Making
- Experiential Consumption
- Consumer Behavior Market Research
- Influencing Consumer Behavior
- Consumerism & Behavioral Appeals
- Customer Satisfaction
- Required Assignments for Marketing 302: Consumer Behavior
- Studying for Marketing 302