What Philosophy Governs Supermarket Psychology Today? Essay
Video: Psychological Pricing (embed video)
1. What philosophy governs supermarket psychology today?
1. Shortcuts to the wallet.
2. What is the impact of the word “special”?
1. Psychological process: special=good
2. Scarcity effect: on special=only for short time
3. What is the impact of packaging?
1. Packaging confirms concept of quality=high price http://www.youtube.com/watch?v=yzRDEKyqIJs&feature=player_embedded Perceived-Value Pricing
Many companies base their pricing strategy on customer’s perceived value. Value delivered must be value promised in their value proposition and customer must perceive other marketing mix constituents like advertising and sales are used to communicate and improve perceived value.
Perceived value is not intrinsic to product itself.
It is made up of several components such as buyer feelings about performance, Channel deliverables, integrity of warranty, and customer service.
Even soft attributes such as character, dependability, and regard enter into equation.
You Do: Build a Perceived Value Chart for your product or service
See Millward Brown
Other Psychological Approaches
Setting psychological pricing strategies starts with YOUR IMAGINATION. Do any of these tactics apply to you?
Anchor Pricing: When consumers are unfamiliar with a product, they will use the highest priced model within a category as an anchor.
Everyone Loves a Bargain:…