Consumer Purchasing Essay

Designing an appropriate pricing strategy is always a challenging task for most corporations, because price is a determinative factor of operating profits. Meanwhile, price can affect customer perceptions and product development. According to the basic economic theory, pricing policy should reflect the product’s costs and the relationship between supply and demand. In addition to the fundamental framework, price settle mechanism should take into consideration the underlying industry environment. For example, pricing in manufacturing is heavily cost-based with the certainty that the costs are fully covered. And conversely, in some particular sectors, there are downsides when price setting relies solely on the variable costs because of the high fixed cost. Based on this judgment, product providers should carry different pricing mechanism under different market conditions. Accordingly, pricing evolves from a purely academic topic related to the economic theories to a profits-maximising instrument involved with marketing practices. All these issues make the price setting problem more

Price is all around us. You pay accommodation fee for your hostel, tuition for your education. You pay transportation fee such as airline, railway, taxi, and bus. And the bank charges you interest for the money you borrow, the price for parking your car at shopping mall. Your hairdresser asks charge for cover his service. The “price” of an executive is a salary, the price of a salesperson may be a commission, and the price of a worker is a wage. Price is the amount of money

Discussion 2: Supply and Demand. Analyze how the law of demand applies to a recent purchase that you made. Describe how the product has changed in price and explain whether the price change is due to supply or demand. Did the change in price affect your decision to purchase the item?

As a consumer, we all get frustrated when we think a listed price is “too high” whether it is a necessity, and we have to buy it, or we just really want it. Some of the largest complaints by consumers today are directed towards the cost of goods. Marketing research has shown us that the costs of some items are being intentionally raised based on aspects of the individual who is making the purchase. The manipulation of prices can be broken down into three main issues: price fixing, price gouging, and price discrimination. Are there any positive or beneficial reasons to do this? Yes and no, the following paragraphs provide information about each practice individually.

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

I agree with your analysis, on how we individuals can be persuaded and convinced into buying a product without difficultly. I, myself can relate to this observation being made. Due to the fact that, I can get easily persuaded into buying a product by the simplicity of an advertisement. Additionally, on how us human beings always have a want for things, that may not be unnecessary,more of a luxury. Moreover, we are sucked into buying these products, by advertisements being aired on television or written on magazines. Making it appeared as a need to us the consume and not a want. I found appealing the references you inform with and the way you analyze them to the reader. Furthermore, I also agree on how one can have it all,

In the industry, many companies are providing high, average and low quality products at different prices so buyers can choose according to their needs. The advertising plays an important role in the industry that company can enhance their market share. The quality and price plays an important role in creating an image which in turn enhance sales.

In order to investigate the problem statement, in section 2 the theories of cost-plus pricing and elasticity of demand will be defined and explained in depth. Additionally, section 2 contains the discussion about how each theory addresses the problem statement. Section 3 will contain the research conducted, specifically an overview of the information gained

The thesis for this article would be the most common pricing cues that retailers utilize and how or if the cues are successful. Also, common marketing techniques, and if the cues are used appropriately or not.

Figure 3: Lush label states "Fresh Handmade Cosmetics" and "Bring back 5 Pots and Get a Fresh Face Mask Free"

Quite often, consumers purchase goods and services based on their perceived need. Upon making the decision that a need is present and a solution is available consumers are more equipped to react to that need. Although previously perceived that consumers will normally accept prices as presented by suppliers that remains to not be the case. Consumers assess and process prices based on past purchases and other psychological process they went through previously such as persuasive marketing strategies, accessibility of the goods or services and possibly information gathered from prior purchasers of a product. There are countless options that are available to consumers. Consumers are then faced with the choice of choosing the product that best fulfills their need at that given point. Consumers who are knowledgeable regarding prices will be aware of the approximated price for products (Zhao, Zhao & Deng, 2015).

Price interacts with all other elements of the marketing mix to determine the effectiveness of each and of the whole. The objectives that guide pricing strategy should be a subset of the objectives that guide overall marketing strategy. Thus, it is probably wrong to view price as an independent element of marketing strategy or to assert that price, by itself, is a central element in the marketing mix.” (Webster, 1979)

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).

There are two types of retailers in e-commerce market; one type is pure network retailers (i.e., Dotcoms) which emerged as internet develops and have no traditional stores and sell products through network while the other type is multi-channel retailers which sell products through both internet and traditional stores. Due to differences of two retailers’ marketing channels, the two retail stores have their own advantage. This article contributes to discussing different retailers’ pricing issues in B2C market, and then further analyzes price dispersion in e-commerce market brought by retailers’ different sale methods.

Brand loyalty is the target of all marketers. It is the product of a psychological contract between the brand and the consumer (Helicon, 2016). Loyalty consists of positive attitudes and preferences for brands leading to their consistent repurchase. Brand loyalty is an avenue for companies to develop long-term relationships with customers. As the cost of advertising has dramatically increased in recent years, marketers are increasingly turning to pricing and price related promotions as a means of influencing purchasing decisions by consumers (Krishnamurthi, 1991). While pricing has a significant impact, consumer preference is often a very difficult barrier to overcome even