MGMT 1000 Lecture Notes - Lecture 6: Psychological Pricing, Marketing Mix, Pricing Strategies
5 Jul 2016
School
Department
Course
Professor
Document Summary
Key idea #1: the marketing mix & customer value triad. Skimming: a high introductory price is charged for an innovative product and later on the price is reduced when more marketers enter the market. Penetration: a lower initial price to capture a large market. Cost-based: pricing based on what it costs a company to make a product. Demand-based: pricing that uses consumer demand as the central element. Prestige pricing: prices are set higher than normal because lower prices will hurt instead of helping sales. Odd-even pricing: psychological pricing method based on the belief that certain prices or price ranges are more appealing to buyers (. 95 vs. . 99 vs. . 00) Mental models are deeply held assumptions and images. Opportunities: you can tell quickly if people buy in to an idea. Challenges: trying to get your peers to see what you believe in, closemindedness. Yes: people have a certain expectation of how a product will perform.
