How to use price to increase demand, profit and customer satisfaction
Author: Leigh Caldwell
Publisher: Crimson Publishing
Category: Business & Economics
One of the most important questions for any business is: how much should I charge? Economics has an easy answer - just look at where demand and supply meet. Unfortunately, this easy answer is wrong. What about the effect of changing the timing on a payment? How do a customer's personal and financial circumstances affect their willingness to pay? Using The Psychology of Price, you can discover why price is a psychological issue - and how to make the most of that knowledge. Written by the founder of the UK's leading pricing consultancy Inon - whose clients range from the BBC and confused.com to Grants Whisky and HM Treasury - The Psychology of Price offers a unique opportunity for business owners and finance and marketing professionals to gain an insight into the way consumers think and purchase - and to learn the actual research methods and pricing techniques used by multinational companies. A practical, jargon-free workbook, The Psychology of Price demystifies a critical aspect of running a business, lucidly and logically explaining the science behind pricing so that you can generate more demand, more profit and more customer value today. Inside The Psychology of Price, you can learn: -How to get people to expect to pay more -How presenting products that nobody wants can influence what customers are willing to pay -How upselling by low-cost add-ons can increase sales and perceived value Crucially, The Psychology of Price will help you find out how good your pricing really is and give you the toolkit to ensure you charge the right price point for your product or service. What have you got to lose?
thimblesofplenty is a group of friends who also happen to be business people and avid readers. We wanted to keep up with the latest business books but found that time was a factor. So we divided out the work and each of us took a book and summarised it for the others. We though it might be a great idea to share these summaries with you. For a small price and a 3 minute time investment, our summary gives you some of the wisdom from the book, some food for thought and hopefully the impetus to make some time to read the whole book!
This comprehensive guide to both the theory and application of psychology to marketing comes from the author team that produced the acclaimed Customer Relationship Management. It will be of immeasurable help to marketing executives and higher level students of marketing needing an advanced understanding of the applied science of psychology and how it bears on consumers; on influencing; and on the effective marketing of organizations themselves, as well as of products and services. Drawing on consumer, management, industrial, organizational, and market psychology, The Psychology of Marketing's in-depth treatment of theory embraces: • Cognition theories. • Personality, perception and memory. • Motivation and emotion. • Power, control, and exchange. Complemented by case studies from across the globe, The Psychology of Marketing provides a trans-national perspective on how the theory revealed here is applied in practice. Marketers and those aspiring to be marketers will find this book an invaluable help in their role as 'lay psychologists'.
After years of study in the area of consumer behavior, Mullen and Johnson bring together a broad survey of small answers to a big question: "Why do consumers do what they do?" This book provides an expansive, accessible presentation of current psychological theory and research as it illuminates fundamental issues regarding the psychology of consumer behavior. The authors hypothesize that an improved understanding of consumer behavior could be employed to more successfully influence consumers' use of products, goods, and services. At the same time, an improved understanding of consumer behavior might be used to serve as an advocate for consumers in their interactions in the marketplace.
Pricing is an essential aspect of the marketing mix for brands and products. Further, pricing research in marketing is interdisciplinary, utilizing economic and psychological concepts with special emphasis on measurement and estimation. This unique Handbook provides current knowledge of pricing in a single, authoritative volume and brings together new cutting-edge research by established marketing scholars on a range of topics in the area. The environment in which pricing decisions and transactions are implemented has changed dramatically, mainly due to the advent of the Internet and the practices of advance selling and yield management. Over the years, marketing scholars have incorporated developments in game theory and microeconomics, behavioral decision theory, psychological and social dimensions and newer market mechanisms of auctions in their contributions to pricing research. These chapters, specifically written for this Handbook, cover these various developments and concepts as applied to tackling pricing problems. Academics and doctoral students in marketing and applied economics, as well as pricing-focused business practitioners and consultants, will appreciate the state-of-the-art research herein.
A comprehensive guide to market-based pricing strategies. The authors argue that pricing strategy should focus on the customer, taking account of the realities of their needs and competitor pressures. Michael Morris' other publications include Business Horizons and Industrial Marketing.
Whether you're up or down at the moment, one fact remains: the stock market is actually 75% psychological and only 25% financial. THE PSYCHOLOGY OF THE STOCK MARKET: Human Impulses Lead To Speculative Disasters is a brief, but fascinating guide about what really influences the way the financial markets behave. Author G.C. Selden examines how to stay emotionally neutral in making investment decisions whether you're buying or selling - and how financial markets are driven by deep-rooted emotions such as fear, greed, and panic. Paying particular attention to the role that investor psychology plays in the movement of the market and individual stocks, THE PSYCHOLOGY OF THE STOCK MARKET is full of investment advice and unaffected wisdom, which remain relevant in today's marketplace.
In this book, the world’s foremost experts on pricing integrate theoretical rigor and practical application to present a comprehensive resource that covers all areas of the field. This volume brings together quantitative and qualitative approaches and highlights the most current innovations in theory and practice. Going beyond the traditional constraints of “price theory” and “price policy,” the authors coined the term “price management” to represent a holistic approach to pricing strategy and tactical implementation. They remind us that the Ancient Romans used one word, pretium, to mean both price and value. This is the fundamental philosophy that drives successful price management where producer and customer meet. Featuring dozens of examples and case studies drawn from their extensive research, consulting, and teaching around the world, Simon and Fassnacht cover all aspects of pricing following the price management process with its four phases: strategy, analysis, decision, and implementation. Thereby, the authors take into account the nuances across industry sectors, including consumer goods, industrial products, services, and trade/distribution. In particular, they address the implications of technological advancements, such as the Internet and new measurement and sensor technologies that have led to a wealth of price management innovations, such as flat rates, freemium, pay-per-use, or pay-what-you-want. They also address the emergence of new price metrics, Big Data applications, two-sided price systems, negative prices, and the sharing economy, as well as emerging payment systems such as bitcoin. The result is a “bible” for leaders who recognize that price is not only a means to drive profit in the short term, but a tool to generate sustained growth in shareholder value over the longer term, and a primer for researchers, instructors, and students alike. Praise for Price Management “This book is truly state of the art and the most comprehensive work in price management.” - Prof. Philip Kotler, Kellogg School of Management, Northwestern University “This very important book builds an outstanding bridge between science and practice.“ - Kasper Rorsted, CEO, Adidas “This book provides practical guidelines on value creation, communication and management, which is an imperative for businesses to survive in the coming era of uncertainty.” - Dr. Chang-Gyu Hwang, Chairman and CEO, KT Corporation (Korea Telecom)
The world’s foremost expert on pricing strategy shows how this mysterious process works and how to maximize value through pricing to company and customer. In all walks of life, we constantly make decisions about whether something is worth our money or our time, or try to convince others to part with their money or their time. Price is the place where value and money meet. From the global release of the latest electronic gadget to the bewildering gyrations of oil futures to markdowns at the bargain store, price is the most powerful and pervasive economic force in our day-to-day lives and one of the least understood. The recipe for successful pricing often sounds like an exotic cocktail, with equal parts psychology, economics, strategy, tools and incentives stirred up together, usually with just enough math to sour the taste. That leads managers to water down the drink with hunches and rules of thumb, or leave out the parts with which they don’t feel comfortable. While this makes for a sweeter drink, it often lacks the punch to have an impact on the customer or on the business. It doesn’t have to be that way, though, as Hermann Simon illustrates through dozens of stories collected over four decades in the trenches and behind the scenes. A world-renowned speaker on pricing and a trusted advisor to Fortune 500 executives, Simon’s lifelong journey has taken him from rural farmers’ markets, to a distinguished academic career, to a long second career as a n entrepreneur and management consultant to companies large and small throughout the world. Along the way, he has learned from Nobel Prize winners and leading management gurus, and helped countless managers and executives use pricing as a way to create new markets, grow their businesses and gain a sustained competitive advantage. He also learned some tough personal lessons about value, how people perceive it, and how people profit from it. In this engaging and practical narrative, Simon leaves nothing out of the pricing cocktail, but still makes it go down smoothly and leaves you wanting to learn more and do more—as a consumer or as a business person. You will never look at pricing the same way again.
Why do we steal? This question has confounded everyone from parents to judges, teachers to psychologists, economists to more than a few moral thinkers. Stealing can be a result of deprivation, of envy, or of a desire for power and influence. An act of theft can also bring forth someone’s hidden traits – paradoxically proving beneficial to their personal development. Robert Tyminski explores the many dimensions of stealing, and in particular how they relate to a subtle balance of loss versus gain that operates in all of us. Our natural aversion to loss can lead to extreme actions as a means to acquire what we may not be able to obtain through time, work or money. Tyminski uses the myth of Jason, Medea and the Golden Fleece to explore the dilemmas involved in such situations and demonstrate the timelessness of theft as fundamentally human. The Psychology of Theft and Loss incorporates Jungian and psychoanalytic theories as well as more recent cognitive research findings to deepen our appreciation for the complexity of human motivations when it comes to stealing, culminating in consideration of the idea of a perpetually present ‘inner thief’. Combining case studies, Jungian theory and analysis of many different types of stealing including robbery, kidnapping, plagiarism and technotheft, The Psychology of Theft and Loss is a fascinating study which will appeal to psychoanalysts, psychologists, psychiatrists, social workers, family therapists and students.