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.
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.
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)
Profiting from Crowd Behavior and the Dynamics of Price
Author: Tony Plummer
Publisher: Irwin Professional Publishing
Category: Business & Economics
"In today's high-tech trading world, it's sometimes difficult to remember what moves markets. It's not computers, fractals or neural networks. It's people - people who make decisions based on their own abilities, emotions and financial resources." "But people do not make decisions in isolation. They are influenced by friends, colleagues and the news media. In the end, most individuals become part of a crowd. That's why so few people make money in the markets; because, as every top trader knows, the crowd always loses in the end." "Winning requires the ability to recognize what the crowd is doing, and to do the opposite. If you develop this one ability alone, your success in the market is virtually assured." "In this completely revised edition of Forecasting Financial Markets - re-titled more aptly The Psychology of Technical Analysis - Tony Plummer demonstrates how to use technical analysis to track crowd psychology and to spot those exciting trades where enormous profits can be made." "Using a variety of technical approaches, Mr. Plummer shows how prices follow a discernible pattern, based on the predictable influence of the crowd. This pattern, which Mr. Plummer calls "THE PRICE PULSE" of the market, provides a workable model for describing how traders react to new, market-moving information." "Most importantly, Mr. Plummer shows how to determine what he calls "THE GOLDEN RATIO," a series of mathematically derived numbers which - together with the price pulse - enable a trader to forecast major tops and bottoms with nearly magical precision." "If this sounds too esoteric, consider the following:" "Between 1929 and 1932, the Dow Jones average fell 344 points. According to the Golden Ratio, that established an upside target of 1000. When 1000 was finally hit in 1965, it marked a 17-year turning point in the market!" "After bottoming out at 59.5 in June 1984, the U.S. Treasury bond futures embarked on an enormous rally, finally peaking at 105.5 in April 1987, almost exactly as the Golden Ratio had predicted!" "Between 1990 and 1992, a period of great volatility in the currency markets, the Golden Ratio forecast virtually every major top and bottom in the U.S. dollar/deutschemark market!" "In short, The Psychology of Technical Analysis is the bible for traders who want to understand the dynamics of crowd behavior and the financial markets, and who want to capitalize on those rare moves where really big profits can be made."--BOOK JACKET.Title Summary field provided by Blackwell North America, Inc. All Rights Reserved
The Myth of Fair Value (and How to Take Advantage of It)
Author: William Poundstone
Publisher: Hill and Wang
Category: Business & Economics
Prada stores carry a few obscenely expensive items in order to boost sales for everything else (which look like bargains in comparison). People used to download music for free, then Steve Jobs convinced them to pay. How? By charging 99 cents. That price has a hypnotic effect: the profit margin of the 99 Cents Only store is twice that of Wal-Mart. Why do text messages cost money, while e-mails are free? Why do jars of peanut butter keep getting smaller in order to keep the price the "same"? The answer is simple: prices are a collective hallucination. In Priceless, the bestselling author William Poundstone reveals the hidden psychology of value. In psychological experiments, people are unable to estimate "fair" prices accurately and are strongly influenced by the unconscious, irrational, and politically incorrect. It hasn't taken long for marketers to apply these findings. "Price consultants" advise retailers on how to convince consumers to pay more for less, and negotiation coaches offer similar advice for businesspeople cutting deals. The new psychology of price dictates the design of price tags, menus, rebates, "sale" ads, cell phone plans, supermarket aisles, real estate offers, wage packages, tort demands, and corporate buyouts. Prices are the most pervasive hidden persuaders of all. Rooted in the emerging field of behavioral decision theory, Priceless should prove indispensable to anyone who negotiates.
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.
Price Creative Work with Confidence. Win More Bids. Make More Money.
Author: Michael C Janda
Publisher: Independently Published
Learn how to price creative work with confidence. Win more bids. Make more money. When it comes to pricing their work, far too many freelance designers and agencies merely guess what to charge their clients. As a result, profitable projects have as much to do with luck as they do anything else. In The Psychology of Graphic Design Pricing, you'll learn how to take luck out of the equation by calculating the cost to produce your work, understanding its market value, and extracting your client's budget. These three variables are used in a pricing spectrum, empowering you to price your work with confidence and profitability in every project opportunity. This book will teach you how to calculate your production costs, understand market value, extract your client's budget, bid with the right project price, and increase your profitability.