Questions On Psychological Pricing Techniques

Holland and Barrett’s products come in recycled plastic bottles which are biodegradable. This will attract and encourage consumers to purchase from their

Relating back to the 20-dollar bill auction, behavior and psychology play a major role. One should not pay more than 20 dollars. This is due to the emotional desire to win that drives bids up, and the fear of being a loser that drives them even higher. Another experiment that related this theory was a bid over a bottle of wine. This was a prime example about anchoring. They were anchored by some random number they were given, and this influenced the amount they used for the bottle of

Many of people have not realized that the creation of bottled water affects our environment. The production of water bottles requires a large amount of water plus the water that is needed to fill the bottle. Considering there is a shortage of water in several places, water should be better handled and not wasted on plastic bottle making. Of the eighty million single serve bottles of water consumed daily, thirty million ends up in landfills (Soechtig, 2009 qtd. in “Bottled Water: The Risks to Our Health, Our

This based on customer pricing method. It relies on consumer 's emotive responses, subjective views and feeling towards specific purchases.

A. Explain what type of market structure is presented in the movie. Explain the types of strategies Joe Fox and Kathleen Kelly use to compete and maintain market power. Differentiate between pricing and non-pricing strategies (use Chapter 7 in Stengel’s textbook). You can expand and talk about potential strategies in the bookselling business even if they were not explicitly addressed in the movie.

We can’t only blame the consumers for the things occurring in our world. If less plastic packaging were used and more paper or glass packaging were used it would really benefit the world. Looking at plastic water bottles many say that they are recycled or reusable but they aren’t always

Other companies can learn a lot about environmentally sustainable operations from Hershey and Coca-Cola. By implementing better and more sustainable product designs and packaging, companies can reduce their economic footprint. Following in Coca-Cola’s footsteps by creating plastic bottles using plants as a main part in production, is an excellent way to improve on environmentally friendly product design.

Mount Franklin is an organization always looking to improve their products to sustain their existing brand loyalty and also expand their customer base. Currently, mount franklin presents their brand as an all-natural and eco-friendly company that lends a hand in helping the world decrease the carbon footprint. Mount Franklin’s new 600ml Easy-Crush bottle is advertised to be made with 35% less plastic and has a 27% lighter carbon footprint as oppose to the previous bottle, using these statistics in the

Lastly, bottling companies have done nothing about recycling, and have left arguably the most important part for everybody else to deal with. Because of this, our oceans are filling with plastic waste and quickly killing our ecosystems. Our beaches will become involuntary garbage dumps and our sand will be replaced by broken down plastic debris. This example again shows corporate greediness, but also shows how big this issue is and how it affects everyone, because it affects the entire

Therefore, Chatime using psychological pricing strategy which is set those ending with nines or other odd numbers on all beverages to stimulate consumer demand and sometimes these are referred to as “just below” prices as they are often “just below” an even price such as RM1.99 vs RM2.00. For example, Chatime instead of charge RM6 for a milk tea beverage you might charge RM5.99 per beverage. Some consumers associate the price closer to RM5 than RM6 even though it is only one cent less and they may subconsciously be partially ignored. The theory that drives this is that lower pricing such as this institutes greater demand than if consumers were perfectly rational. Psychological pricing is one cause of price points to get more customers and the psychological pricing method helps Chatime build an impression of the brand without making significant changes to the product. Simply revising the pricing structure can make the product seem like the best on the market compare with other competitors or elevate the Chatime’s milk tea to the top of the available options. Although the price of Chatime’s milk tea is lower than competitors, customers are those who important of quality and price attributes will buy the products too. It is because customers are relatively insensitive to the product price. Customers willing to pay more for own

According journalist Eric Goldschein, the United States drank 9 billion gallons of water in 2008 (Business Insider). Therefore, in order to prevent access waste and build up of plastic from the water bottles, many different varieties of reusable water bottles on the market today advertise the message of an eco-friendly product. This message, however, can be easily adulterated and twisted in the manufacturer’s favor for simply business purposes, thus promoting bottles that have only the perk of being used many times before they are eventually discarded, ultimately falsifying the term “reusable”. When compared to the message of perpetual reusability, as well as the “five steps to eco-effectiveness,” put forth in the book Cradle to Cradle

“One of the biggest challenges facing the bottled water industry is how to respond to the environmental claims levelled against it” (Grocer). Every time someone throws a bottle away, they have taken up more space in a landfill for the next four hundred fifty to one thousand years. Besides the long decomposition rate, water bottles are the cause of several more environmental issues. Overfilling landfills, health hazards caused by refilling, and the economic stresses due to the constant and inconvenient repurchasing are just a few of the negatives water bottles have on us. These plastic pollutants are doing more harm to both the environment and their users than good.

Perhaps one of the most difficult managerial decisions in the 21st century is the decision to make a decision. Analysis paralysis, endless meetings, and corporate structure have made it painstakingly difficult to come to any real conclusions. So when the Chief Financial Officer, Bruce Berman, of Bloomindale’s was tasked with decision to implement ProfitLogic’s Pricing Optimization (PO) system, he called upon Daniel Gabbay, an analyst in the finance division, to make sense of the numbers and guide his decision making process. Berman was considering implementing a PO system to quantify the markdown

Based on these 6 factors in setting a price: selecting the pricing objective, determining demand, estimating costs, analyzing competitors costs, prices and offers, selecting a pricing method and selecting the final price, Singapore GP Pte Ltd employed 2 different pricing strategies. They are

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).