how does consumer process and evaluate prices
TRANSCRIPT
![Page 1: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/1.jpg)
![Page 2: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/2.jpg)
![Page 3: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/3.jpg)
Who are consumers?Who are consumers?
![Page 4: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/4.jpg)
Traditional EconomistsTraditional EconomistsDefine them as:Define them as:““PRICE TAKERS”PRICE TAKERS”
![Page 5: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/5.jpg)
![Page 6: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/6.jpg)
![Page 7: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/7.jpg)
![Page 8: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/8.jpg)
![Page 9: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/9.jpg)
They Interpret that informationThey Interpret that informationin thein the
context of:context of:
![Page 10: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/10.jpg)
![Page 11: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/11.jpg)
Formal communicationFormal communication
![Page 12: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/12.jpg)
Informal Informal communicationcommunication
![Page 13: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/13.jpg)
![Page 14: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/14.jpg)
Extreme Low PriceExtreme Low Price
![Page 15: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/15.jpg)
Extreme High PriceExtreme High Price
Is the product Worth?Is the product Worth?
Is likeIs like
![Page 16: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/16.jpg)
![Page 17: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/17.jpg)
Guess the Prices of Guess the Prices of following Denims:following Denims:
![Page 18: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/18.jpg)
![Page 19: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/19.jpg)
Around 1000/-Around 1000/-
![Page 20: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/20.jpg)
![Page 21: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/21.jpg)
Around 2500/-Around 2500/-
![Page 22: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/22.jpg)
![Page 23: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/23.jpg)
![Page 24: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/24.jpg)
But all are same,But all are same,Blue jeansBlue jeans
Why does the price differ?Why does the price differ?
![Page 25: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/25.jpg)
• LEE and Flying Machine indicate fashion, fit, and finish.
• Levis sells craftsmanship and Lifestyle.
• Armani sells Exclusivity and status.
![Page 26: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/26.jpg)
Its not alwaysIts not always the cost of product making the cost of product making
that decides the that decides the Price.Price.
![Page 27: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/27.jpg)
Understanding theUnderstanding the consumer perception consumer perception
Of prices Of prices is very important.is very important.
![Page 28: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/28.jpg)
![Page 29: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/29.jpg)
![Page 30: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/30.jpg)
• Internal reference, like comparing with latest Price they remember.
• External frame of reference reference like comparing with the “Regular Retail Price.”
![Page 31: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/31.jpg)
• Fair Price• Typical Price• Last price paid• Upper Bound Price• Lower Bound price• Historical Competitor price• Expected future price• Usual discounted price
![Page 32: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/32.jpg)
![Page 33: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/33.jpg)
Many consumers assume,Many consumers assume,
![Page 34: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/34.jpg)
When information aboutWhen information about true quality is available,true quality is available,
![Page 35: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/35.jpg)
![Page 36: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/36.jpg)
![Page 37: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/37.jpg)
![Page 38: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/38.jpg)
![Page 39: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/39.jpg)
![Page 40: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/40.jpg)
ODD Ending Price ODD Ending Price make youmake you
perceive priceperceive price lower than actual.lower than actual.
Like 29$ is looked as 20$Like 29$ is looked as 20$Whereas 30$ as 30$.Whereas 30$ as 30$.
![Page 41: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/41.jpg)
Like….Like….
![Page 42: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/42.jpg)
![Page 43: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/43.jpg)
![Page 44: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/44.jpg)
These kind of pricing luresThese kind of pricing luresCustomers to buy products.Customers to buy products.
![Page 45: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/45.jpg)
![Page 46: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/46.jpg)
![Page 47: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/47.jpg)
![Page 48: How does consumer process and evaluate prices](https://reader035.vdocuments.us/reader035/viewer/2022062320/55d1f797bb61eb627a8b475e/html5/thumbnails/48.jpg)
Thank You.Thank You.