Explain some theory that you have read about in relation to the Essay

Explain some theory that you have read about in analogy to the pricing of products and discuss its usefulness - Essay ExampleIn the marketplace, they encounter a wide army of vendors and product offerings with a complex variety of benefits, determines, terms, and promotional messages. Research findings suggest that much of what mint do when they buy products and services follows a definite logic. They look for cues to help simplify decision making, and often verify on simple rules of thumb. Correspondingly, it is possible to identify patterns of behavior in the way buyers go about refreshing their needs (Morris, Morris, 1990). The business must consider the customers perception of footing implementing strategies such as positioning, price points and fairly pricing. Price alone can be used in several ways to attract customers. thither be two opposing strategies to the pricing of a product. If the business expects to be the low-cost leader, it must price (position) lower than the competition. If it wants to signal high lumber, it should price products higher than most of the competition. Some manufacturers and retailers use price as a signal of quality. Consumers often have few indicators of quality, so price may be perceive as one of the better available cues. By studied these various psychological aspects of consumer behavior, it becomes possible to price products and services to be of maximum appeal to the target market.Certain brands and retailers position themselves as providing value and quality at a low cost. These retailers rely on loss leaders to get consumers in the accession knowing that once in, consumers are more likely to shop for other things as well. There are sure specific prices (price-points) at which people become more willing to buy a certain type of product. Under 100 is a popular price point. An amount below 20 including sales tax is another popular price point because it is the most popular denomination of money that people t ypically carry with them.