What´s Odd-End Pricing?

One of the pricing strategies that was heavily used around the store, as well as almost all competitors, was odd-even pricing. It was difficult to find a product at any of the stores I visited to find a price that did not end in .99. The company was also using price lining, or selling a line of products of the same functionality with differing levels of quality at different price points. A good example was their line of speaker wire, which came in several

The key to successful pricing is to match the product with the consumer's perception of value.

TenTree uses pricing to create cost-sacrifice and symbolic-expressive value for their customers/consumers. They have priced their products in a range that provides high-quality clothing while relatively less expensive than high-fashion brands such as Diesel or Hugo Boss. All of their items are priced ending with 99¢ in order to, psychologically, appear cheaper. (TenTree, n.d.) Their relatively higher priced

Why do many carmex product prices end in 9? What type of pricing is this called? Carmex uses the demand oriented

Odd-even pricing – Using numbers to trick and fuck people into thinking goods are cheaper

First of all let me explain why people like to buy a items/goods those are higher in price’s. Those who are purchasing the target brand items are making a selection, spending only a few seconds before moving on. This leads me to suggest that consumers are not paying much attention to prices. On the other hand, we know from scanner data that consumers respond a great deal to price changes. It appears that rather than looking at prices per see on every shopping occasion, consumers may check prices only periodically (say, every ten shopping times) or rely on cues in the environment—e.g., buy whatever brand is on sale. Other, thing which I realized is that different people live in a different

Assiging a middle value of 4 or 5 to price was intentional as consumers know that CruiserThorr's are priced high.

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

Therefore, on occasion, our price is below the market line where we have a negative budget due to the lost of revenue. But there are times our price is over the market line where we incur revenue but not as much because due to the low amount of customers are buying our products. Then, when our price is just right on the market line that is where we incur the most revenue since our price is affordable and reasonable to customers.

The negotiations on PS featured a much greater emphasis on getting the best position than satisfying interests. The PS staff’s goal of maximizing profits remained consistent throughout the episode. Therefore, the PS staff were always attempting to lower the cost of the item, and so their number was not just based on market-value, but on seeing how low they could get the selling party to go down. Similarly, the sellers wanted to maximize their profits and normally had

Another reason on why King’s 99 Cent sets the price higher than average cost is the owner wants to create an effect to show the customers that they have products that are superior than other dollar stores. These causes has created a negative effects on the store’s reputation. The customers believed that it did not reach an equilibrium price between the quality of the product and the price that the customers have to pay. The second effect is it will lower down the sale of other products due to the bad pricing. The solution that I discovered that will balance the operating profit is to purchase stocks from the other suppliers that have a cheaper stock price and better quality. Another solution is to create a website to promote the products to the online shoppers. This solution will increase awareness from the social media and can be globalize to the people all over the

Paying any more or less will make you question your decision and the quality of the item. It will also make yourself wonder if your repeated buying of a product is actually worth the price you pay, such as the example of Starbucks mentioned in the book. The price of the product is not the only factor that decides supply and demand. Changes in the price of substitutes, complements, amount of income, and population also affect the amount of demand for a product. People also tend to add more value to products they enjoy and rebuy. When we love a product, we expect everyone else will too. With this mindset, we also tend to value these items more and therefore price them higher than their true value, and we tend to compare the other equal options as a subpar option. Everything ties back to relativity when it comes to what people want. As mentioned by Ariely, when offered something at a fair value and then something not as good for free, such as the Snickers and the fun sized snickers respectively, people will usual choose the free item because they value their money more than the item. With this in mind, we have to decide what is more valuable: money someone is willing to pay for the coveted item or the item

The rule of thumb is not always reasonable in a situation whereby a particular goods will have a lower price but the quality will be of the higher one and such will distract people who always apply the rule of thumb on all the items they purchased from the market. E.g. some candy cost only 0.99 cent and taste better with greater flavor then other expensive candy that taste

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, 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).