Lecture 7_Pricing_Place_stds - Pricing Strategies Delivery...

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Pricing  Delivery  Channels Lecture 7
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HBR Article How to stop customers fixating on price? Paradoxically => get them fixated on price
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Using price structure to clarify  advantage First way to reduce price sensitivity is to call  attention to the value that the product and  service delivers
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Where does the $1 go to in a  charity drive?
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Willfully overprice to stimulate  curiousity  Customers don’t automatically dismiss the  higher-priced model Customers may be motivated to take a closer  look Are there additional or special features included  in the product that justifies the price increase?  Burt’s Bees => charges a premium of 80%- 100% over unnatural personal care brands
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Clazz Buzz 1. Apple products are priced at a premium And yet people are still buying them Why? 2.
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Lecture 7_Pricing_Place_stds - Pricing Strategies Delivery...

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