The Sage Course Companion on Marketing is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like a marketer but also to think about the subject critically. It is much more than a revision guide for undergraduates; it is an essential tool that will help readers take their course understanding to new levels and help them achieve success in their undergraduate course.
Psychological pricing is the use of an understanding of consumer thought processes in order to determine appropriate prices for products.
The main contribution of psychology in pricing decisions is the role of perception. People tend to perceive a total product, including core benefits, product attributes, support services and indeed the whole package of benefits the product offers: against this, they compare the price. Since many of the attributes of the product remain unknown until after purchase, price is often used as a surrogate for determining quality.
Psychological pricing relies on emotional responses from the consumer rather than on considered calculation. Higher prices are often assumed by consumers to indicate higher quality, so some firms will use prestige pricing, by which the prestigious nature of the ...