--%>
Assignment Help - homework help

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 : What are the types of price

    What are the types of price discrimination?

    		•
  • Q : Wealth definition of economics Who is

    Who is the father of economics and what is wealth definition of economics?

    		•
  • Q : Technological advances in starting of

    Technological advances because the starting of the twentieth century has: (w) removed the limits on our ability to produce. (x) removed the problem of scarcity. (y) expanded our capability to produce. (z) raised the use of resources for production.

    Q : Illustrates the types of Demand

    Illustrates the types of Demand Forecasting?

    		•
  • Q : Substituting machinery for human labor

    Substituting sophisticated machinery for human labor is termed as: (1) automation. (2) industrial sabotage. (3) kinetic engineering. (4) outsourcing. (5) robotics. Hello guys I want your advice. Please recommend some views for abov

    		•
  • Q : Illustrate signalling by example If

    If interviewing for a job like a bill collector for a loan shark, Bob mentions his degree into martial arts by the Hard Knox Reformatory, his summer internship along with BreakUrLegs, Inc., as well as his family links. Bob’s casual discussion of such credentials

    		•
  • Q : Profit Maximization and the Demand for

    An increase within competitively-set wages tends to cause firms to adjust hence there are reductions into the: (1) amounts of labor most firms hire. (2) value of the marginal productivity of workers. (3) marginal profit from hiring labor. (4) technolo

    		•
  • Q : Elasticity of supply of labor by

    If the wage rate increases from $10 per hour to $25 per hour, then the elasticity of the supply of labor from this worker is roughly: (1) zero. (2) 7/15. (3) one. (4) minus 8/15.

    Q : Phases of business cycle explain the

    explain the different phases of business cycle

    		•
  • Q : Requirements for Food production I have

    I have a problem in economics on Diminishing Returns. Please help me in the following question. In a completely employed food-and-clothing economy, equivalent successive raises in food production will ultimately need successively: (i) Larger increases

    		•