Marketing lecture 12_3_Notes - 18/02/2009 20:16:00...

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Unformatted text preview: 18/02/2009 20:16:00 Marketing Unit based pricing finding some common denominator Creating a base price Determinants of Price Sensitivity 5. Price-quality Effect o If I pay more, it must be better o E.G. Wine 6. The Expenditure Effect o How much effort do you have to go through to acquire the good o Builds product up through search rather than actually knowing the product o 7. End-Benefit effect o Concept of exercise, some people dont enjoy the process but love the end relief. E.g. muscle milk 8. Shared cost effect o We are less price sensitive if someone else is paying for part of the bill 9. Fairness Effect o Is this a fair price? 10. Inventory Effect o If I have a lot of product, I should be willing to sell it for less o Surplus effect 11. The reference or framing effect o Manufacturer suggest retail price (MSRP) o Creates impression of a deal Pricing: Definition...
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This note was uploaded on 02/20/2009 for the course H ADM 241 taught by Professor Mmccall during the Fall '08 term at Cornell University (Engineering School).

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Marketing lecture 12_3_Notes - 18/02/2009 20:16:00...

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