Question

1. Why pricing cues are important to both consumers and retailers? 2. Pick and choose two...

1. Why pricing cues are important to both consumers and retailers? 2. Pick and choose two pricing cues (out of four) discussed in article and discuss how they could be used properly.

Homework Answers

Answer #1

Price cue can be defined as the marketing technique which is used by the organisations to create a sense of perceptions among the customers that the price which is being offered by the organisation is better than their competitior's prices. Price cue is an important element for both retailer as well as the customer as it helps the customer to segregate the best competitior or the firm from a group of organisations as customer doesn't know what the actual price of the product would be. Thus, it helps the customer to make a fair decision out of all available options. And it is benificial for the retailers as price cue helps in developing a perception thus making your products look better than your competitior's and thus make your sale volume go up as the prices attracts the customer to buy your prducts or services.

Our of the 4 price cues options, the two options I would like to discuss about is the:

1. Sale Signs: You have often seen that you get to be attracted by the shops or products/services having a flashing of 50-60% discount over it. Have you ever wondered why? Retailers often use this perceptional technique of putting the sale signs on the products to make them look attractive in the eyes of the customers. By putting that sign, generally they don't go into the losses. What they do is they increase their price of the product on the label, then put a 50% sign for which the customer thinks that he/ she is getting a better quality products at half the price which is a good deal but the actual thing is the price that you'll pay even after this discount will still profit the organisation more than 15-20% margin. It is one of most effective pricing techniques.

2. Prices that end in 9: Another strategy is the prices that ends with 9. You have often seen the 99 stores around you where all the products are labelled with $299, $99 or $9 instead of $300, $100 or $10 respectively. Have you ever considered why? It is again because of the psychological factor which the marketers use in which we percieve that $299 is an effective deal than $300 as we see the $299 is the 200 range which is obviously lesser than the $300 which we'll consider in the 300 range. It is a simple brain trick but this actually makes the customer to buy the products which ends with 9 more than the whole number as it tends to give brain an idea that we are getting a better deal.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1)Describe how retailers and gas stations used to make pricing decisions and explain how that could...
1)Describe how retailers and gas stations used to make pricing decisions and explain how that could lead to price wars?
First please discuss why pricing is important to any business? Then please discuss two aspects of...
First please discuss why pricing is important to any business? Then please discuss two aspects of pricing. please includeexamples.
1. Why is it important for an implementation plan to be properly resourced? Discuss in 120–150...
1. Why is it important for an implementation plan to be properly resourced? Discuss in 120–150 words. 2. What areas should training involve? Provide two examples. 3. List three participant needs that should be taken into account. 4. Why is it important that data not be lost during the transfer process? Discuss in 100–120 words. Thank you
1. Pick 4 stocks and create a portfolio. Discuss how and why the combination will reduce...
1. Pick 4 stocks and create a portfolio. Discuss how and why the combination will reduce portfolio risk compared to holding these stocks individually and separately. What would be the portfolio’s beta? (You can find stock’s beta on each stock’s homepage at http://finance.yahoo.com (Links to an external site.)Links to an external site.) Is your portfolio still subject to market risk? And why? 2. Discuss and comment on CAPM(Capital Asset Pricing Model). Give an example of it.
1. Discuss the effects of the economy on the company's pricing strategy? 2. Discuss why an...
1. Discuss the effects of the economy on the company's pricing strategy? 2. Discuss why an enterprise considers raising prices? Try for 2 illustrative examples of the problem of price increase in practice?
Go to CNN Business, and choose any article that relates to two of the key concepts...
Go to CNN Business, and choose any article that relates to two of the key concepts listed here: 1) advertising, 2) public relations, 3) business environment, 4) factors of production, 5) pricing strategies explain in 5-7 sentences why the article you have selected relates to the concepts you chose,  include the link
Two retailers are considering inventory management of one of the products they are both selling. Each...
Two retailers are considering inventory management of one of the products they are both selling. Each of them has an average demand of 12 units per week with a standard deviation of 2 units per week. The supply lead time is constant and equal to 2 weeks. 1. How much safety stock should each retailer keep to achieve a service level of 95% (z = 1.64)? Imagine now that those two retailers are going to be combined into one integrated...
1. Choose two (2) approaches (e.g. Demand-, and Cost-oriented approaches) 2. Choose one method for each...
1. Choose two (2) approaches (e.g. Demand-, and Cost-oriented approaches) 2. Choose one method for each approach (e.g. I chose odd-even pricing for Demand-oriented approach and standard markup cost method for Cost-Oriented approach) 3. Use examples to illustrate these two methods that you've chosen to do. EXAMPLE: For my two examples I chose demand oriented and cost oriented approach I chose bundle pricing for my demand oriented and I chose cost plus pricing for the cost oriented approach My first...
Here are the basic rules of Club Keno: You choose how many numbers you will pick....
Here are the basic rules of Club Keno: You choose how many numbers you will pick. You can pick anywhere from 1 to 10 different numbers. Pick your numbers between 1 and 80. A drawing is held in which 20 numbers are picked. Depending on how many of your numbers come up in the drawing, you win various amounts of money. In a previous assignment we saw the number of ways to choose exactly x correct from a total of...
Q1. Why is the SSU rRNA gene used as a molecular clock? Choose two reasons out...
Q1. Why is the SSU rRNA gene used as a molecular clock? Choose two reasons out of the following three: A) It evolves slowly B) It is an essential gene C) It is easily horizontally transferred Q2. Which of the following observations is usually required to know that two bacteria are members of the same species? Pick two answers out of the three. A) average nucleotide identity greater than or equal to 90% B) SSU rRNA similarity greater than or...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT