Perception definition marketing for free#

Perception definition marketing for free#

If you are in the market for the products offered, then getting $199 worth of widgets for free may seem like a great deal.

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Everybody likes freebies and bonuses! So you see and read catching offers like: This strategy gives customers the perception that they are getting way more than what they are paying for. Price Perception of ValueДЄ common ploy of many retailers as well as Internet marketing gurus is to bundle their products and offer some for free. The perception of savings makes for a powerful pricing strategy. People think that theyвЂ™re getting a bargain with an item priced as $9.99 instead of $10.00 - they look at the 9 and think that they saved that the price is not $10. Nonetheless, customers look at items with prices ending with вЂњ.99вЂќ more favorably. Price Perception of SavingsД®ver wonder why retailers end their prices with the ubiquitous $0.99, instead of a вЂњ0вЂќ or вЂњ1вЂќ? Obviously, $9.99 is not much better than $10.00 after all, thatвЂ™s a mere $0.01 savings! Here are some ways when perception plays a large role in pricing: 1.

All these factors contribute to what we call the psychology of price. In setting your prices, the first crucial question you need to answer is: вЂњWhat price do I charge?вЂќ But you also need to consider the how, what, when, where and what form of pricing by asking the question: вЂњHow do I charge?вЂќ Customers will react differently if you break the price into parts, bundle the product or service with other items, request for paying late or early. When setting your prices, consider that perception plays a large role in customersвЂ™ acceptance. However, consumers behave differently, sometimes even irrationally when presented with a variety of triggers. Traditional economic thinking assumes that markets are always efficient and participants always rational. People process numbers differently, and weвЂ™ll often never know what is in their minds when they consider prices and how this affects their behavior. And small businesses that understand how psychology plays with their pricing strategies can come out the winners. In many cases, the psychology of pricing is more important than the actual price itself. Pricing is more than just about numbers it is a play on perception.