Pricing and Consumer Psychology
Jansson-Boyd (2012) has stated that the cost of any product and service is comparatively relative to what the purchaser think the cost should be. In most of the cases, the customer depends upon the previous price experience and judge the price on whether it is high or low. Sometimes, the first technique that the customers use is that they attempt to form a pricing strategy in order to compare directly the price with the competitors. It has been seen in several cases that low price of any product either attract the attention of the customers or, on the contrary, put the question to the quality of the products.
Li and Liu (2015) has opined that promotional pricing adopted by the company often drag attention of the customers but this strategy is not always applicable. From the scenario, it has been found that the customers go to both the gas stations, despite showing differentiated price on the board because of different consumer psychology.
Pride and Ferrell (2012) have said that counterintuitive is one that does not seem likely to be true at the time of assessing using intuition, some common sense and gut feelings. It has been significantly discovered that objective truths most of the times are often termed as counterintuitive at the time intuition, emotions and some other cognitive processes outside the deductive rationally interpret them to be precisely wrong. Therefore, this phenomenon plays one of the major roles to influence the behavior and the buying decision of the customers.
Jansson-Boyd, C. (2012). Consumer psychology. Maidenhead: McGraw-Hill Open University Press.
Li, Q., & Liu, Y. (2015). Correlation between parameter sensitivity and counter-intuitive phenomenon of elastic “plastic beam dynamics. Computers & Structures, 84(3-4), 156-165.
Pride, W., & Ferrell, O. (2012). Marketing 2012. Mason, Ohio: Cengage Learning.