how do consumers process and evaluate prices
TRANSCRIPT
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Price processing and evaluation by consumers
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UNDERSTANDING
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NOT JUST A NUMBER ON A TAG
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IT CONSISTS OF:• PRICE PAID FOR SOME GOODS OR
SERVICES.• RENTS• FARES• WAGES • COMMISSIONS
ADJUSTED BY:• REBATES• DEALER INCENTIVES
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EXAMPLE: JET AIRWAYS
ALLOWS CUSTOMER TO PAY THROUGH:• FLIER PROGRAMS• COMBINATION OF CASH
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BUYERS CHOICE
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CHANGING PRICING ENVIRONMENTMARKET IN SOUTH-ASIA
AFFLUENT CUSTOMERSTRUGGLERS
ASPIRING CUSTOMER
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GET INSTANT PRICE COMPARISONS FROM THOUSAND OF VENDORS
INTERNET:BUYERS DISCRIMINATE SELLERS
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NAME THEIR PRICE AND HAVE IT MET
INTERNET:BUYERS DISCRIMINATE SELLERS
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GET PRODUCTS FREE
INTERNET:BUYERS DISCRIMINATE SELLERS
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INTERNET:BUYERS DISCRIMINATE SELLERS
GAVE PDF READER FREE FREEMIUM STRATEGY
GET PRODUCTS FREE
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INTERNET:BUYERS DISCRIMINATE SELLERS
1.SEATS FREE2.PAY EXTRA FOR EVERYTHING ELSE
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INTERNET:SELLERS DISCRIMINATE BUYERS
MONITOR CUSTOMER BEHAVIOUR AND TAILOR OFFER TO INDIVIDUALS
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INTERNET:SELLERS DISCRIMINATE BUYERS
GIVE CERTAIN CUSTOMERS ACCESS TO SPECIAL PRICES
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INTERNET: BOTH BUYERS AND SELLERS DISCRIMINATE EACH OTHER
NEGOTIATE PRICES IN ONLINE AUCTIONS AND EXCHANGES OR EVEN IN PERSON
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CONSUMER PSYCHOLOGY AND PRICING
•PRICE TAKERS•ACCEPTS PRICES AT FACE VALUE
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CONSUMERS PROCESSES PRICES BY:
•PRIOR PURCHASING EXPERIENCE.
•FORMAL COMMUNICATIONS THROUGH ADS, SALES CALLS , BROCHURES.
•INFORMAL COMMUNICATIONS THROUGH FRIENDS COLLEAGUES.
•POINT OF PURCHASE OR ONLINE RESOURCES.
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SAME PRODUCT : DIFFERENT PRICES
PREMIUM BRANDS:HIGHER PRICE
NORMAL BRAND:LOWER PRICE
MID-SEGMENT BRAND:MEDIUM PRICE
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CONSUMERS ARRIVAL AT THEIR PERCEPTIONS OF PRICE
1.REFERENCE PRICES : COMPARE PRICES
•FAIR PRICE•TYPICAL PRICE•UPPER/LOWER BOUND PRICE•EXPECTED FUTURE PRICE
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2.PRICE QUALITY INFERENCES
•INDICATOR OF QUALITY•SIGNAL OF QUALITY
CONSUMERS ARRIVAL AT THEIR PERCEPTIONS OF PRICE
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3.PRICE ENDINGS
•999 BETTER THAN 1000•PRICES ENDING WITH 0 & 5 ARE POPULAR•LIMITED STOCK
CONSUMERS ARRIVAL AT THEIR PERCEPTIONS OF PRICE
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EXAMPLE: TATA DOCOMO
TATA CDMA ALLIED WITH NTT DOCOMO TO CAPTURE THE MARKET SHARE
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PER SECOND PLAN
INCENTIVES PROVIDED BY TATA DOCOMO
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INCENTIVES PROVIDED BY TATA DOCOMO
UNLIMITED GPRS
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UNLIMITED FACEBOOK AND WHATS APP
INCENTIVES PROVIDED BY TATA DOCOMO
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PER CHARACTER CHARGING SCHEME FOR TEXT MESSAGES
INCENTIVES PROVIDED BY TATA DOCOMO
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SUMMARY
•CONSUMERS’ PROCESSING AND REACTION ON PRICE CHANGE MAJORLY DEPENDS ON THEIR MARKET SEGMENT.
•INTERNET HAS CHANGED THE VIEWS AND DOMAINS OF CONSUMERS BY PROVIDING INFORMATION AND COMPARISON BETWEEN THOUSANDS OF FIRMS.
•MARKETERS SHOULD CHANGE THE STATED PRICE BY KEEPING IN MIND CONSUMER PSYCHOLOGY , UPPER-LOWER THRESHOLD , PRODUCT QUALITY AND PERCEIVED PRICE.
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AKASH RANJAN PRADHANNIT ROURKELADURING A MARKETING INTERNSHIP BY PROF.SAMEER MATHUR IIM LUCKNOWWWW.IIMINTERNSHIP.COM
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