PRicing.pdf - Pricing Wednesday 23 May 2018 2:10 PM Price...

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Price Appeal Appeals basedon price are easier to communicate - Price changes are more immediate and direct - Shortlead times for policy change - No initial negative cash flow (unlikeproduct development, advertising) - But competitors can react more readily to price appeals than appeals based on productaugmentations. Profitformula ࠵?࠵?࠵?࠵?࠵?࠵?࠵? = ( ࠵?࠵?࠵?࠵?࠵? − ࠵?࠵?࠵?࠵? ) ࠵? ࠵?࠵?࠵?࠵? ࠵?࠵?࠵?࠵?࠵? Price :Most firmsleave it to the market Cost: Strongemphasis within mostorganisations UnitSales: Strongemphasis throughsales efforts, advertising, new product development etc. Price to consumer Money 1. Time 2. Behavioural Effort 3. Cognitive Activity 4. -- Lowering Price will Increase the Value to customers Customers Manage Cognitive Activity ApplyingHeuristics (decision Rules) - Brand Loyalty - EvokedSets - Reference Groupsand Family - How Do ConsumersProcess Price Information Pricing Wednesday, 23 May 2018 2:10 PM
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High Involvement Product Comprehension- interpretation and assignmentof meaning Quality Assurance Pricing Price communicatesthat extra effort expanded to produce a superior productthat will perform tothe customer's satisfaction;particularly effective where Productperformance varies i.
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Christopher Reinemann
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