Wednesday, May 4, 2011

Class 14 - April 28, 2011

This week we discussed Chapter 18 - Setting the Right Price. 

Setting the right price on a product is a four-step process:


Another thing I thought was especially interesting was the odd-even pricing (or psychological pricing). This pricing strategy means that odd numbered prices are used to connote a bargain and even numbered prices are used to imply quality  For example, buying something for $99.95 makes you feel as if it's a good deal, whereas buying something, such as a bottle of perfume, for $100 implies prestige rather than bargain.

I will be able to use this information in coming up with the right prices for my services for my clientele.

No comments: