BEHAVIORAL FOUNDATIONS FOR PRICING MANAGEMENT

Question 1

Price Perception

Answer 1

How consumers interpret and evaluate prices.

Question 2

Reference Prices

Answer 2

Consumers compare prices based on past experience.

Question 3

Price Sensitivity?l

Answer 3

The degree to which price changes affect demand.

Question 4

Loss Aversion

Answer 4

People fear losses more than they value gains.

Question 5

Anchoring Effect?l

Answer 5

First price seen influences perception.

Question 6

Framing Effect

Answer 6

How price presentation changes perception.

Question 7

Fairness Perception

Answer 7

Consumers judge price fairness based on context.

Question 8

Price-Quality Heuristic

Answer 8

Higher price signals better quality.

Question 9

Decoy Effect

Answer 9

Introducing a third option to influence choice.

Question 10

Odd-Even Pricing

Answer 10

Prices ending in .99 vs. rounded prices.

Question 11

Mental Accounting

Answer 11

How people categorize spending.

Question 12

Bundle Pricing

Answer 12

Selling products together at a discount.

Question 13

Partitioned Pricing

Answer 13

Breaking down costs to make them appear smaller.

Question 14

Pay-What-You-Want Pricing

Answer 14

Letting customers choose their price.

Question 15

Prestige Pricing

Answer 15

Setting high prices to create exclusivity.

Question 16

Dynamic Pricing

Answer 16

Adjusting prices based on demand and competition.

Question 17

Surge Pricing

Answer 17

Higher prices when demand spikes.

Question 18

Price Discrimination

Answer 18

Charging different prices to different segments.

Question 19

Promotional Pricing

Answer 19

Temporary price reductions to boost sales.

Question 20

Price Matching

Answer 20

Matching competitors’ prices to retain customers.

Question 21

Loyalty Programs

Answer 21

Rewarding repeat customers with discounts.

Question 22

Subscription Pricing

Answer 22

Charging recurring fees for ongoing services.

Question 23

Freemium Model

Answer 23

Free base product with paid premium features.

Question 24

First-Degree Price Discrimination

Answer 24

Personalized pricing for individuals.

Question 25

Second-Degree Price Discrimination

Answer 25

Volume-based pricing strategies.

Question 26

Third-Degree Price Discrimination

Answer 26

Pricing based on customer groups.

Question 27

Scarcity Effect

Answer 27

Limited availability increases perceived value.

Question 28

Endowment Effect

Answer 28

Owning something increases its perceived value.

Question 29

Time-Limited Offers?l

Answer 29

Creating urgency to encourage purchases.

Question 30

Coupon and Discount Strategies

Answer 30

Encouraging purchases through incentives.

Question 31

Psychological Pricing

Answer 31

Using price to influence perception and behavior.

Question 32

Competitor-Based Pricing

Answer 32

Setting prices based on rivals.

Question 33

Cost-Plus Pricing

Answer 33

Pricing based on production cost plus margin.

Question 34

What is Value-Based Pricing?

Answer 34

Setting prices based on perceived customer value.

Question 35

Economy Pricing

Answer 35

Keeping costs low for budget-conscious customers.

Question 36

Premium Pricing

Answer 36

Charging high prices for exclusivity.

Question 37

Price Elasticity of Demand

Answer 37

How price changes impact sales volume.

Question 38

Behavioral Economics in Pricing

Answer 38

Using psychology to set prices.

Question 39

Hyperbolic Discounting

Answer 39

Preference for smaller immediate rewards over larger future rewards.

Question 40

Price Bundling vs. Unbundling

Answer 40

Selling products together or separately.

Question 41

Prestige Pricing vs. Discount Pricing

Answer 41

Balancing exclusivity and affordability.

Question 42

Consumer Inertia

Answer 42

Customers sticking with default options.

Question 43

Market Segmentation and Pricing

Answer 43

Tailoring prices for different groups.

Question 44

Price Transparency

Answer 44

How clear or hidden pricing affects trust.

Question 45

Social Proof in Pricing

Answer 45

Using customer behavior to justify prices.

Question 46

Price-Ending Effects

Answer 46

How numbers (e.g., .99 vs. .00) affect perception.

Question 47

Guilt Pricing Strategies

Answer 47

Encouraging donations or rounding up purchases.

Question 48

Competitor Benchmarking in Pricing

Answer 48

Comparing with industry standards.

Question 49

Impulse Buying and Pricing Strategies

Answer 49

Using pricing to trigger spontaneous purchases.

Question 50

Decoy Pricing in Subscription Models

Answer 50

Using an unattractive option to guide choices.