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