Psychological Pricing


Psychological pricing encourages purchases based on emotional rather than rational responses to the price. The assumption behind symbolic/prestige pricing is that high prices connote high quality. Thus the price of certain fragrances are set artificially high to give the impression of superior quality.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Outline of Cross-cultural Analysis of Consumer Behavior


  1. Determine Relevant Motivations in the Culture: What needs are fulfilled with the product in the minds of members of the culture? How these needs are presently fulfilled? Do members of this culture readily recognize these needs?
  2. Determine Characteristic Behavior Patterns: What patterns are characteristic of purchasing behavior? What forms of division of labor exist within the family structure? How frequently the product of this type purchased? What size packages are normally purchased? Do any of these characteristic behaviors conflict with behavior expected for this product? How strongly ingrained are the behavior patterns that conflict with those needed for distribution of the product?
  3. Determine What Broad Cultural Values Are Relevant to This Product: Are there strong values about work, morality, religion, family relations, and so on that relate to the product? Does this product connote attributes that are in conflict with these cultural values? Can conflicts with values be avoided by changing the product? Are there positive values in this culture with which the product might be identified?
  4. Determine Characteristic Forms of Decision-making: Do members of the culture display a studied approach to decisions concerning innovations or an impulsive approach? What is the form of the decision process? Upon what information sources do members of the culture rely? Do members of the culture tend to be rigid or flexible in the acceptance of new ideas? What criteria do they use in evaluating alternatives?
  5. Evaluate Promotion Methods Appropriate to the Culture: What role does advertising occupy in the culture? What themes, words, or illustrations is taboo? What language problems exist in present markets that cannot be translated into the culture? What types of salesmen are accepted by members of the culture? Are such salesmen available?
  6. Determine Appropriate Institutions for This Product in the Minds of Consumers: What types of retailers and intermediary institutions are available? What services do these institutions offer that are expected by the consumer? What alternatives are available for obtaining services needed for the product but not offered by existing institutions? How are various types of retailers regarded by consumers? Will changes in the distribution structure be readily accepted?

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight