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22 paź 2024 · Pricing is not merely about covering costs and adding a profit margin. It involves understanding how customers perceive prices and how these perceptions influence their buying decisions. This approach, known as psychological pricing, leverages human psychology to set prices that appeal to customers’ emotions and cognitive biases.
25 paź 2016 · Behavioral pricing extends traditional price theory by exploring consumers’ reactions to prices from a psychological perspective. With the constant and substantial evolution of this research field, we review the progress on the state of knowledge on consumers’ processing of price information and price behavior.
1 wrz 2014 · Pricing practices used to advertise products and services to consumers – such as ‘3 for $5’, ‘60% off’ or ‘sale – one week only’ – are highly prevalent in today’s society (Trinh et al., 2012).
5 lip 2021 · The psychological affordance of price is one of its most potent and under-appreciated aspects. Psychological affordances produce specific effects due to the interaction between the...
This article describes how prices are treated in economic theory. Section 17.2 begins by introducing the concepts of ‘rational preference’ and ‘utility function’, which are standard building blocks of models that attempt to explain choice behaviour.
4 mar 2023 · Three influencing factors have contributed to this: (a) the widespread use of the price threshold technique (“charm pricing”); (b) a strong competitive orientation in B2C pricing (“competitive pricing”); (c) algorithms and associated pricing logics (price matching, price beating, repricing, etc.).
12 gru 2018 · S-O-R models explain why a customer responds to a price in a particular way. In this chapter we will explore two research traditions and their findings in depth. One is the older field of price psychology, and the other is the newer research field behavioral economics or behavioral pricing.
