Discussion Post I: "Psychological" Pricing
In addition to all that you have learned about pricing models and strategies, here's one more thing can pricing issue that can influence a consumer's buying decision: The Decoy Effect. Watch the YouTube video: "THE DECOY EFFECT I masalo efektas".
In the field of Psychology, this phenomenon is known as the "Asymmetric Dominance Effect". Essentially, consumers will tend to have a specific change in preference between two options, where a third option becomes more desirable than one option (dominant), but less desirable than the other option (asymmetric).
Task
• Beyond the video example here, what are some other businesses (products- or services-based) that you personally have encountered that used this pricing phenomenon?
• Pick one of your personal experiences with the decoy effect, and briefly describe your rationale for making the "third-option" choice.
Discussion Post II: Self-Brand Relationships
Let's revisit Starbucks again from the perspective of "Self-Branding".
In the Case Study, Susan Fournier postulated about the meaning and power of "self-brand relationships". Now Watch the YouTube video: "Starbucks Customer Brand Experience" that demonstrates how Starbucks attempts to build brand relationships:
Now address the following:
• Identify and briefly discuss some of the examples Starbucks used to appeal to the "functional, utilitarian, psychological and emotional" factors one might associate with their Brand and their own lives.
• Briefly describe whether or not YOU personally associate and/or identify with any of those factors conveyed in the Starbucks' video. Why or why not.
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.