--%>

Define consumer psychology and pricing and affecting element

Define the consumer psychology and pricing and affecting elements.

E

Expert

Verified

When fixing the price of product, the management must provide significance to consumer psychology. In fact demand of the product is based on the behavior of consumers. Several consumers may buy a product of high quality even if the products are highly priced. Consumers think such that highly priced products are of high quality. When the price of product is less, consumer will believe such that such product is of low quality. When the price is higher, the consumer may boycott the product and they will go for substitute product of lower price. When the price is too low the consumers believe that the goods are of inferior quality. Therefore they will not buy this.

The significant elements that influence the consumer psychology are as: price of the product, advertisement, sales promotion and after sales service, personal income as well as fashions. Therefore consumer are many types, they follow various approaches to firms product. Hence, in case of price determination, the consumer psychology should specified due weightage.

   Related Questions in Managerial Economics

  • Q : Explain opinion of Stonier and Hague

    Illustrates the opinion of Stonier and Hague for explaining Demand in economics?

  • Q : Capital and Wage Differentials Relative

    Relative to evenly strong, smart, and hard-working people along with less education, and the high school graduates who invest most heavily within more advanced formal education are probable to experience lower average: (w) wages when first entering th

  • Q : Occupational Crowding in Wage

    Disadvantaged groups have historically been pressured toward low wage jobs in a procedure termed as: (1) occupational crowding. (2) labor staggering. (3) systemic discrimination. (4) reverse favoritism. (5) nepotism.

    Q : Wage Rates and Employment An increase

    An increase in the competitively-set wage tends to cause: (w) firms to reduce the amounts of labor hired. (x) increases in the marginal revenue products of the workers a firm retains. (y) higher marginal factor costs of labor to competitive firms. (z)

  • Q : What are the important pricing

    What are the important pricing strategies?

  • Q : Problem regarding Income and Demand

    When family incomes within the United States raised sharply and therefore, sales of cashmere sweaters improved enormously, in that case cashmere sweaters are: (1) luxury goods. (2) preferred to wool or cotton sweaters. (3) inferior goods. (4) prestige goods. (5) norma

  • Q : Value of the Average Product Hulk is a

    Hulk is a fitness counselor who coaches five clients at a time during exercise groups at Beefcake Body Builders. Hulk’s hourly wage is of $17, and Beefcake charges his clients $20 for every hour-long conditioning session. Therefore average value of produ

  • Q : Income effect of a wage increasing When

    When the income effect of a wage increase is more powerful in that case the substitution effect, the: (1) labor supply curve will be “backward bending.” (2) unemployment rate will rise since more people will be available for work. (3) valu

  • Q : Competitive Profit Maximization in

    A profit-maximizing competitive firm hiring by a competitive labor market will be within equilibrium where is: (w) MPP = MRC. (x) w = MRC. (y) VMP = MPP. (z) VMP = w. Hey friends please give your o

  • Q : Illustrates the term Elasticity

    Illustrates the term Elasticity?