--%>

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 : Find equality of Net economic

    Net economic investment plus depreciation equivalents: (a) the capital output ratio. (b) gross economic investment. (c) gross domestic product. (d) the capital stock. Hello guys I want your advice. Please recommend

  • Q : Surpluses quantity for Supply and Demand

    When an exceptionally warm winter caused the quantity of cashmere sweaters supplied to exceed the quantity demanded at the present market price, in that case: (1) cashmere sweaters will be more heavily demanded subsequent year than this year. (2) an overload of cashme

  • Q : Illustrates the pricing policy and

    Illustrates the pricing policy and practices?

  • Q : Explain short term Demand forecasting

    Explain short term Demand forecasting.

  • Q : Income and Substitution Effects When

    When the income effect of a higher wage rate is extremely powerful in that case the substitution effect, the: (1) supply curve of labor will be positively sloped. (2) demand for leisure increases like income rises. (3) human capital effect is stronger

  • Q : Opportunity cost of good Since an

    Since an economy moves downward all along the production possibility frontier which is concave from beneath, the: (1) Opportunity cost of the good whose production goes increasing. (2) Law of rising returns outcomes ever lower costs. (3) Dollar value

  • Q : Explain the business decision based

    Explain the business decision based upon income elasticity.

  • Q : States the term fixed cost in briefly

    States the term fixed cost in briefly.

  • Q : What are the important areas of

    What are the important areas of decision making?

  • Q : Most valuable human capital The most

    The most valuable human capital onto the given list would be possessed through a person who: (w) inherited a great deal of money. (x) invested large sums on the stock market. (y) had an advanced degree in music education. (z) specialized like a medica