group 2

• THE PSYCHOLOGY OF PRICING

  describes the business practice of setting prices lower than a whole number. IT IS A pricing and marketing strategy based on the theory that

  certain prices have a psychological impact.
• THE CASE FOR THE NUMBER NINE

  customers are more likely to buy products whose price points end in the number nine. BY this Somehow our brain perceives greater value from a small price change that ends in 9.
• ANCHORING

  It is a cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered (the “anchor”) when making decisions. - In the presentation of pricing, it has a powerful impact on buyer behavior. - In negotiated pricing, the first price offered becomes the __
• PROFIT-ORIENTED PRICING

  places an emphasis on the finances of the product and business.

  
  

  PROFIT=REVENUE-COST
• COMPETITOR-ORIENTED PRICING

  A company simply copies the competitor’s pricing strategy or seeks to use price as one of the features that differentiates the product

  
  

  VALUE=PERCIEVED BENEFITS-PERCIEVED COSTS
• COSTUMER-ORIENTED PRICING

  looks at the

  full price-value equation and establishes the price that balances the value. The company seeks to charge the highest price that supports the value received by the customer. __ requires an analysis of the customer and the market
• VAN WESTERNDORP PRICE-SENSITIVITY METER

  This method uses the following four questions to understand customer perceptions of pricing.