Mediaspace scheduled maintenance: Aug 25, 2026 07:00 - 12:00 AM. During this time, videos will be temporarily unavailable. Check status updates.

Lecture

Consumer Psychology and Pricing

In course

MGT-401: Strategic marketing & technology commercialization

This course teaches students the power of building and implementing marketing strategies in order to help businesses to commercialize successfully their technological innovations.
It offers a large overview of modern marketing and is not suited for stude ...

Description

This lecture covers the importance of consumer psychology in pricing strategies, including reference prices, price-quality relationships, price endings, and price cues. It also delves into value-based pricing concepts, differentiated pricing strategies, and the role of distribution channels in marketing.

This video is available exclusively on Mediaspace for a restricted audience. Please log in to MediaSpace to access it if you have the necessary permissions.

Watch on Mediaspace

Official source

Related concepts (28)

Pricing

Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product. Pricing is a fundamental aspect of product management and is one of the four Ps of the marketing mix, the other three aspects being product, promotion, and place.

Value-based pricing

Value-based price (also value optimized pricing and charging what the market will bear) is a market-driven pricing strategy which sets the price of a good or service according to its perceived or estimated value. The value that a consumer gives to a good or service, can then be defined as their willingness to pay for it (in monetary terms) or the amount of time and resources they would be willing to give up for it. For example, a painting may be priced at a higher cost than the price of a canvas and paints.

Price discrimination

Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different market segments. Price discrimination is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. Price differentiation essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand.

Dynamic pricing

Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands. Businesses are able to change prices based on algorithms that take into account competitor pricing, supply and demand, and other external factors in the market. Dynamic pricing is a common practice in several industries such as hospitality, tourism, entertainment, retail, electricity, and public transport.

Predatory pricing

Predatory pricing is a commercial pricing strategy which involves the use of large scale undercutting to eliminate competition. This is where an industry dominant firm with sizable market power will deliberately reduce the prices of a product or service to loss-making levels to attract all consumers and create a monopoly. For a period of time, the prices are set unrealistically low to ensure competitors are unable to effectively compete with the dominant firm without making substantial loss.

Related lectures (33)

Entrepreneurial Marketing MOOC: Launching New Ventures

Explores entrepreneurial marketing, pricing strategies, guerrilla marketing, and public relations for innovative start-ups.

Economic Innovations

Explores the economic impact of innovations, focusing on valuation, consumer surplus, and welfare effects.

Value of Innovation

Explores the economic and social value of innovation, analyzing consumer surplus, profit distribution, and disruptive effects of companies like Amazon and Airbnb.

Revenue Maximization MOOC: Introduction to Discrete Choice Models

Delves into revenue maximization through pricing strategies and customer behavior analysis to optimize revenues effectively.

Market Failures: Negative Externalities