Behavioral Pricing

Note on Behavioral Pricing
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Easier set-up 2. Despite these facts, it is interesting to note that economists in general, and marketing scientists in particular, acknowledge that there is still far too little replication work, especially in a cross-cultural setting Armstrong, ; Campbell and Stanley, ; Easley et al. Therefore, it was apparent that the different ways of evaluating and storing price information were not independent from each other: buyers who were more interested in prices seemed to process this information in absolute terms and in relative terms simultaneously, albeit with a different degree of accuracy. These results confirm H3 with respect to income level for these two measures of price knowledge. Research tools have to fundamentally evolve from measuring willingness to pay to understanding the role of price in the decision making process 1 2

About This Blog Readers of this blog will find a wealth of articles about price optimization, price research and willingness-to-pay analysis. Recent Posts. Ekman P An argument for basic emotions. Etkin J, Ratner RK Goal pursuit, now and later: temporal compatibility of different versus similar means. Franke N, Keinz P, Steger CJ Testing the value of customization: when do customers really prefer products tailored to their preferences?

Gauri DK, Sudhir K, Talukdar D The temporal and spatial dimensions of price search: insights from matching household survey and purchase data. Gedenk K, Sattler H The impact of price thresholds on profit contribution—should retailers set 9-ending prices? Gelbrich K I have paid less than you! Goh KH, Bockstedt JC The framing effects of multipart pricing on consumer purchasing behavior of customized information good bundles. Gourville JT Pennies-a-day: the effect of temporal reframing on transaction evaluation.

Gourville JT, Soman D Payment depreciation: the behavioral effects of temporally separating payments from consumption.

Behavioral Pricing

Gregg DG, Walczak S Dressing your online auction business for success: an experiment comparing two ebay businesses. In: Gross JJ ed Handbook of emotion regulation.

Guilford Press, New York [u. Hamilton R, Chernev A The impact of product line extensions and consumer goals on the formation of price image. Haumann T, Quaiser B, Wieseke J, Rese M Footprints in the sands of time: a comparative analysis of the effectiveness of customer satisfaction and customer-company identification over time.

Havlena WJ, Holbrook MB The varieties of consumption experience: comparing two typologies of emotion in consumer behavior. Heath Ch, Soll J Mental budgeting and consumer decisions. Hinz O, Spann M The impact of information diffusion on bidding behavior in secret reserve price auctions. An examination of dynamic pricing in name-your-own-prince markets.

Note on Behavioral Pricing

Z Betriebswirtsch 75 4 — Google Scholar. Z Betriebswirtsch 75 5 — Google Scholar. A study of the relationship between customer satisfaction and willingness to pay. Homburg C, Koschate N, Totzek D How price increases affect future purchases: the role of mental budgeting, income, and framing. Homburg C, Allmann J, Klarmann M a Internal and external price search in industrial buying: the moderating role of customer satisfaction.

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Howard DJ, Kerin RA Broadening the scope of reference price advertising research: a field study of consumer shopping involvement. Hubert M Does neuroeconomics give new impetus to economic and consumer research? Hubert M, Kenning P A current overview of consumer neuroscience. Irmak C, Wakslak CJ, Trope Y Selling the forest, buying the trees: the effect of construal level on seller-buyer price discrepancy.

  1. Behavioral Pricing: Instrument for Revenue Growth.
  2. Lyric Pieces Book 2, op. 38, no. 7: Waltz.
  3. In the days of Alfred the Great.
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  5. Branching solutions to one-dimensional variational problems?
  6. The Fatal Conceit: The Errors of Socialism?
  7. Drug Delivery Nanoparticles Formulation and Characterization (Drugs and the Pharmaceutical Sciences, 191).

Izard CE Human emotions. Jang H, Chu W Are consumers acting fairly toward companies? An examination of pay-what-you-want pricing. Jap SD, Haruvy E Interorganizational relationships and bidding behavior in industrial online reverse auctions. Johnson JW, Cui AP To influence or not to influence: external reference price strategies in pay-what-you-want pricing. A constrained optimization of customized temporal discounts.

Kachersky L Reduce content or raise price? The impact of persuasion knowledge and unit price increase tactics on retailer and product brand attitudes. Kahneman D, Tversky A Prospect theory: an analysis of decision under risk. Econometrica 47 2 — CrossRef Google Scholar. Kamakura WA, Moon S Quality-adjusted price comparison of non-homogeneous products across internet retailers. Kamleitner B, Erki B Payment method and perceptions of ownership. Khan U, Dhar R Price-framing effects on the purchase of hedonic and utilitarian bundles.

Kim J, Kaufmann K, Stegemann M a The impact of buyer-seller relationships and reference prices on the effectiveness of the pay what you want pricing mechanism. King D, Janiszewski C The sources and consequences of the fluent processing of numbers. Klapper D, Oetzel S Optimal pricing strategy for quantity discount promotions. Neuron — CrossRef Google Scholar.

Krishna A Behavioral Pricing. In: Rao VR ed Handbook of pricing research in marketing. Kruger J, Vargas P Consumer confusion of percent differences. Kukar-Kinney M, Grewal D Comparison of consumer reactions to price-matching guarantees in internet and bricks-and-mortar retail environments.

What is Behavioral Pricing?

Kumar V, Rajan B Social coupons as a marketing strategy: a multifaceted perspective. Kumar V, Swaminathan S The different faces of coupon elasticity. Self-construal influences price-quality judgments. Lambrecht A, Skiera B a Paying too much and being happy about it: existence, causes, and consequences of tariff-choice biases. Lambrecht A, Tucker C Paying with money or effort: pricing when customers anticipate hassle. Consumer behavior under three-part tariffs.

Behavioral Pricing - Zielke - - Major Reference Works - Wiley Online Library

Larson JS, Hamilton R When budgeting backfires: how self-imposed price restraints can increase spending. Lazarus RS Emotion and adaptation. Schmalenbach Bus Rev —49 forthcoming Google Scholar. Liu H, Chou H The effects of promotional frames of sales packages on perceived price increases and repurchase intentions.

Loureiro YK, Haws KL Positive affect and malleable mental accounting: an investigation of the role of positive affect in flexible expense categorization and spending. Lu Q, Moorthy S Coupons versus rebates. Luna D, Kim H How much was your shopping basket? Working memory processes in total basket price estimation.

  1. Practical Applications;
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  3. Behavioral Pricing: A consumer’s worst nightmare, a merchant’s dream;
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Evidence from pay-what-you-want decisions and self-pumped gasoline purchases. Major B, Testa M Social comparison processes and judgments of entitlement and satisfaction. Harvard Bus Rev 70 5 —94 Google Scholar. Mishra A, Mishra H The influence of price discount versus bonus pack on the preference for virtue and vice foods.

Miyazaki AD Guest editorial: the psychology of pricing on the internet. Monga A, Bagchi R Years, months, and days versus 1, 12, and the influence of units versus numbers. Everyone sees their price, that no one else can see. Taking us closer to perfect price discrimination. It does not end there. It is malleable. Once customers open their mind a little through their social media behavior, they are are also opening a control channel to the marketers. A channel that will help the marketers nudge customers to pay a higher price than what they would have otherwise would have paid.

It is a brave new world. World with NO price tags, price lists, pricing pages and posted prices of any kind. Previously I wrote about the self-serve frozen yogurt stores in the context of creative packaging for better price realization.

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Behavioral pricing is a relatively new approach in the pricing of commodities. Pricing for a product is determined based on the behavior of potential customers. Behavioral pricing research has focused on many aspects of the psychology of pricing: for example, price awareness, the formation and use of reference prices, .