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Price processing and evaluation by consumers

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Page 1: How do consumers process and evaluate prices

Price processing and evaluation by consumers

Page 2: How do consumers process and evaluate prices
Page 3: How do consumers process and evaluate prices

UNDERSTANDING

Page 4: How do consumers process and evaluate prices

NOT JUST A NUMBER ON A TAG

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IT CONSISTS OF:• PRICE PAID FOR SOME GOODS OR

SERVICES.• RENTS• FARES• WAGES • COMMISSIONS

ADJUSTED BY:• REBATES• DEALER INCENTIVES

Page 6: How do consumers process and evaluate prices

EXAMPLE: JET AIRWAYS

ALLOWS CUSTOMER TO PAY THROUGH:• FLIER PROGRAMS• COMBINATION OF CASH

Page 7: How do consumers process and evaluate prices

BUYERS CHOICE

Page 8: How do consumers process and evaluate prices

CHANGING PRICING ENVIRONMENTMARKET IN SOUTH-ASIA

AFFLUENT CUSTOMERSTRUGGLERS

ASPIRING CUSTOMER

Page 9: How do consumers process and evaluate prices

GET INSTANT PRICE COMPARISONS FROM THOUSAND OF VENDORS

INTERNET:BUYERS DISCRIMINATE SELLERS

Page 10: How do consumers process and evaluate prices

NAME THEIR PRICE AND HAVE IT MET

INTERNET:BUYERS DISCRIMINATE SELLERS

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GET PRODUCTS FREE

INTERNET:BUYERS DISCRIMINATE SELLERS

Page 12: How do consumers process and evaluate prices

INTERNET:BUYERS DISCRIMINATE SELLERS

GAVE PDF READER FREE FREEMIUM STRATEGY

GET PRODUCTS FREE

Page 13: How do consumers process and evaluate prices

INTERNET:BUYERS DISCRIMINATE SELLERS

1.SEATS FREE2.PAY EXTRA FOR EVERYTHING ELSE

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INTERNET:SELLERS DISCRIMINATE BUYERS

MONITOR CUSTOMER BEHAVIOUR AND TAILOR OFFER TO INDIVIDUALS

Page 15: How do consumers process and evaluate prices

INTERNET:SELLERS DISCRIMINATE BUYERS

GIVE CERTAIN CUSTOMERS ACCESS TO SPECIAL PRICES

Page 16: How do consumers process and evaluate prices

INTERNET: BOTH BUYERS AND SELLERS DISCRIMINATE EACH OTHER

NEGOTIATE PRICES IN ONLINE AUCTIONS AND EXCHANGES OR EVEN IN PERSON

Page 17: How do consumers process and evaluate prices

CONSUMER PSYCHOLOGY AND PRICING

•PRICE TAKERS•ACCEPTS PRICES AT FACE VALUE

Page 18: How do consumers process and evaluate prices

CONSUMERS PROCESSES PRICES BY:

•PRIOR PURCHASING EXPERIENCE.

•FORMAL COMMUNICATIONS THROUGH ADS, SALES CALLS , BROCHURES.

•INFORMAL COMMUNICATIONS THROUGH FRIENDS COLLEAGUES.

•POINT OF PURCHASE OR ONLINE RESOURCES.

Page 19: How do consumers process and evaluate prices

SAME PRODUCT : DIFFERENT PRICES

PREMIUM BRANDS:HIGHER PRICE

NORMAL BRAND:LOWER PRICE

MID-SEGMENT BRAND:MEDIUM PRICE

Page 20: How do consumers process and evaluate prices

CONSUMERS ARRIVAL AT THEIR PERCEPTIONS OF PRICE

1.REFERENCE PRICES : COMPARE PRICES

•FAIR PRICE•TYPICAL PRICE•UPPER/LOWER BOUND PRICE•EXPECTED FUTURE PRICE

Page 21: How do consumers process and evaluate prices

2.PRICE QUALITY INFERENCES

•INDICATOR OF QUALITY•SIGNAL OF QUALITY

CONSUMERS ARRIVAL AT THEIR PERCEPTIONS OF PRICE

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3.PRICE ENDINGS

•999 BETTER THAN 1000•PRICES ENDING WITH 0 & 5 ARE POPULAR•LIMITED STOCK

CONSUMERS ARRIVAL AT THEIR PERCEPTIONS OF PRICE

Page 23: How do consumers process and evaluate prices

EXAMPLE: TATA DOCOMO

TATA CDMA ALLIED WITH NTT DOCOMO TO CAPTURE THE MARKET SHARE

Page 24: How do consumers process and evaluate prices

PER SECOND PLAN

INCENTIVES PROVIDED BY TATA DOCOMO

Page 25: How do consumers process and evaluate prices

INCENTIVES PROVIDED BY TATA DOCOMO

UNLIMITED GPRS

Page 26: How do consumers process and evaluate prices

UNLIMITED FACEBOOK AND WHATS APP

INCENTIVES PROVIDED BY TATA DOCOMO

Page 27: How do consumers process and evaluate prices

PER CHARACTER CHARGING SCHEME FOR TEXT MESSAGES

INCENTIVES PROVIDED BY TATA DOCOMO

Page 28: How do consumers process and evaluate prices

SUMMARY

•CONSUMERS’ PROCESSING AND REACTION ON PRICE CHANGE MAJORLY DEPENDS ON THEIR MARKET SEGMENT.

•INTERNET HAS CHANGED THE VIEWS AND DOMAINS OF CONSUMERS BY PROVIDING INFORMATION AND COMPARISON BETWEEN THOUSANDS OF FIRMS.

•MARKETERS SHOULD CHANGE THE STATED PRICE BY KEEPING IN MIND CONSUMER PSYCHOLOGY , UPPER-LOWER THRESHOLD , PRODUCT QUALITY AND PERCEIVED PRICE.

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AKASH RANJAN PRADHANNIT ROURKELADURING A MARKETING INTERNSHIP BY PROF.SAMEER MATHUR IIM LUCKNOWWWW.IIMINTERNSHIP.COM

CREATED BY


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