use reference points to secure higher pricing

A reserve of $23.15 will secure higher bids than a reserve of $23.00  Janiszewski and Uly tested consumer valuations of a television after supplying them with ‘precise value prices’. Three ‘precise value prices’ were tested. In each case, the consumer was asked to nominate the likely sale price in a department store. The findings were as […]

A reserve of $23.15 will secure higher bids than a reserve of $23.00  Janiszewski and Uly tested consumer valuations of a television after supplying them with ‘precise value prices’. Three ‘precise value prices’ were tested. In each case, the consumer was asked to nominate the likely sale price in a department store. The findings were as follows: Precise value price 1       $4998                   estimated sale price $4569 Precise value price 2       $5000                    estimated sale price $4158 Precise value price 3       $5102                    estimated sale price $4578 These findings suggest two things: the estimated price is tied to the precise value price rounding a precise value price delivers a lower estimate Building on ideas discussed previously, these findings point to the fact that prices and the perception of value are not absolute. Consumers base their perception of value on reference points. Further, consumers do not trust rounded prices and view them as less…

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Five Tips For Reducing
The Cost Of Branding.

Burning money on branding is more common than most marketers think. Because few businesses truly understand what a brand is and how branding works, advertising agencies, branding agencies and design studios have become expert at spending their client’s money without effective accountability.

Burning money on branding is more common than most marketers think. Because few businesses truly understand what a brand is and how branding works, advertising agencies, branding agencies and design studios have become expert at spending their client’s money without effective accountability.

1. Get out of the boardroom.

Perhaps the two most concerning issues about branding are the lack of understanding about what brand and branding are and the propensity to develop brands in the boardroom, perhaps with the help of a consultant.....

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