Placebo Is for Real - How to apply the placebo effect to consumer marketing by Erkki Leppänen

Author:Erkki Leppänen [Leppänen, Erkki]
Format: azw3
Publisher: Klaava Media
Published: 2013-02-12T05:00:00+00:00

3. The Placebo Effect and Pricing

Often, customers say that a certain product or service is too expensive. In a way, this is a fallacy. It is a result of two different points of view.

If the customer does not want to pay the requested price for a certain product or service, the perceived value of the product is not adequate to the customer. As an alternative to a price discount, the value of the product or service can be increased. The perceived value of the product is directly linked to the customer's willingness to buy. The more a customer wants a product, the more they are willing to pay for it, assuming that they have the funds for it.

The customer and the marketer look at prices from different angles. For the customer, price is an expense. As an exchange for the paid price, they receive perceived value in the form of a product or service. For the marketer, price means revenue.

If the customer is acting rationally, the purchase will happen if these two different points of view meet (figure 6).

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.