2.4 Perceived Price Fairness
Price has been defined as “what is given up or sacrificed to obtain a product” (Zeithaml, 1988). Price can be viewed as one of the most important ingredients in customer satisfaction as price may act as a signal of quality, thus, customers depend on price. Jacoby and Olson, 1977 identified that price can be differentiated as an objective price or a perceived price. Objective price was identified as being the actual selling price of the product, often determined by the seller (Jacoby and Olson, 1977) while perceived price according to Zeithaml, (1988) is the price of the product determined in the mind of the customer, other definitions of perceived price state that this is the price based on the customers’ subjective
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Other studies consider perceived price fairness as the ability of a selling to be able to justify their prices (Xia et al, 2004). For a customer the determination of whether the price is a fair one or not involves the process of considering many reference points such as past prices, competitors’ prices and cost of goods sold when (Bolton et al, 2003). Studies indicate that if a buyer perceives that the benefits they obtain from a particular product is relative to the perceived sacrifice, which is the price to be paid and is perceived to be fair, they would not mind paying a higher price (Monroe, 2003). Hermann et al (2007) have found that price perception has a positive impact on price …show more content…
However, reputation looks at the assessment of a thing or person in a favourable view (Chun, 2005). The ideas of surrounding corporate/business reputation first emerged in the 1950’s as corporate image and later evolved into corporate identity in 1970’s and 1980’s (Bennett and Kottasz, 2000). A company’s reputation is built through a series of perceptions held by various stakeholders with regard to a company’s abilities and willingness to satisfy the needs of its various stakeholder groups (Fombrum, 1996). There is research to support that the reputation of an organization may have an effect on the trust level of its customers (e.g. Lee 2005; Lacey, 2007), and in the same way the corporate brand relationship can also be molded by this level of trust (e.g. Lacey,2007; Gronross,1997; O’Malley & Prother 2004). The ability of any organization to build long term meaningful relationships with its customers may serve favorably towards the organization in terms of its success as well as profitability (Gronroos,
By responding to all concerns of customers efficiently with a sense of importance I build productive relationships which help attain higher customer satisfaction rates and customer loyalty that brings revenue for the organization.
Anti- trust Laws of United states Antitrust law United States antitrust laws are referred to as competition laws. These laws are enforced by the government to protect consumers from vulturous business practices and ensuring that a clean competition exists in the open market economy. Congress was the first to pass the anti-trust law, the Sherman Act was the first law to be passed in the year 1890 as a comprehensive character of economic liberty which aims to preserve free and unfettered competition as a rule of the trade. In the year 1914 two more additional antitrust laws were passed by the congress: The Federal Trade Commission Act and the Clayton Act. These are the three core federal act which are being in effect today.
There are many reason why we need a fair system. A fair system is what controls the behaviour of people using laws or rules and it protects and maintain peace between or amongst people and give us equity and fairness, “Justice cannot be for one side alone, but must be for both” ~Eleanor Roosevelt. An example is Canada, it’s a place where everyone is responsible for trying to comprehend the rights and freedoms of all Canadians. Another example is the guy name Steven Truscott who was nearly executed for committing a murder that he never did.
Price Discrimination can be implemented through first-, second-, and third-degree price discrimination. First-degree Price Discrimination involves charging each customer the maximum price they are willing to pay for a given service. While it is difficult to implement in practice, advancements in data collection and analysis could help Canada Post better understand individual customers’ willingness to pay and tailor prices accordingly. Second-degree Price Discrimination involves offering different prices for different quantities of the same good or service. For example, Canada Post offers express, priority and economy delivery options with corresponding price differences.
Hollister offers wide range of consumer shopping goods related to the Clothing line. They offer different product with different versions to Dudes and bettys include graphic and “crew and tee shirts”, polo’s, Henley’s, cardigans, shirts, pullovers, outerwear, rinse or wash slim jeans, flip-flops, shoes, perfume and boxers. Product Attributes: High Quality, Unique comfortable designs inspired by the SoCal Theme and different styles and Colorful patterns. Product Packaging Hollister is well-known for its stylish shopping bags that use young attractive models on them.
4.4 Pricing Strategy For a number of reasons, price is one of the most important aspects of an effective marketing strategy (Gerstein & Friedman, 2015). First, price is the only marketing variable that generates revenue. Second, buyers see price as an attribute of value (Tanner & Raymond, n.d.). Consequently, an organization must carefully assess its internal and external environment to choose the most effective pricing objective, which—in turn—will drive a product’s initial pricing strategy.
This creates the perception by the consumer to be a value-added pricing of the products. The two price adjustment tactics of UNIQLO are detailed as follows: Psychological
This is extremely popular in the hotel industry. In this chapter we will overview these techniques. Let’s start with the second degree price discrimination. In theory, the second degree price discrimination is referred to quantity discounts and occurs when different prices are set for different quantities of the same goods, for example buying a 6-pack of Coca-Cola cans will cost less than buying 6 Coca-Cola cans separately. However, in reality, second degree price discrimination takes place not necessarily by adjusting the quantity of the good, but also the quality of the good.
In marketing, customer relation is very important, since customers play the main role in achieving ones
This is the comparison of the benefits offered by a company's product to its customers relative to the price it asks customers to pay. To do this, companies can influence the value proposition in one of two ways mainly. This can be done through long term brand building. They can also offer a relatively low cost to enhance value. Ultimately, the key is that customers perceive that the product's merits exceedingly justify its price.
6.1.2 Price Price is the value or amount that customer pays to buy a product. For instance, for our Star Lab ice cream shop, we need to consider the cost of production of our ice cream, price of our main competitor and our potential customers demographics in order to succeed this competitive market. (C. Breidert, 2007, p.9) 6.1.2.1 Pricing Strategy Pricing strategy that can be used by our company such as penetration pricing, cost-plus pricing, value based pricing and more. But we think that market penetration pricing is the best pricing strategy to be used by our business.
When the value a customer receives from a product is greater than that of another then they are more inclined to stick with that
Mr Price is known to be the best retail company that has a wide range of products sold in South Africa. They were established in 1885, they have been trading on the JSE since 1952. There are Mr Price stores located all around Africa, such as Botswana, Kenya, Tanzania, Malawi, Namibia and of course in South Africa. The founders Laurie Chiappini and Stewart Cohen opened the very first Mr Price in 1985 in Durban.
Introduction At the start of this course, I had no idea what to expect. This is due to the fact that marketing is a field that offers a combination of so many different disciplines such as art, psychology, and statistics. I encounter marketing on a daily basis but have strangely enough not reflected too much about it. Nevertheless, it is a very interesting subject, which deals with promoting and selling services and products.
Competitor Analysis Marigold, is the market leader in fresh dairy and beverage market in Malaysia, however it is not entirely dominated by its own brand. There is existence of a few numbers of beverage and fresh dairy milk competitors. Dairies products are considered very low degree of differentiation with competitors. Therefore, customers are allowed to compare products’ quality and especially price, is the factor that customers considered the most between the competitors’ products. The intensity of competition in dairy industry is very tough (UK Essays, 2015).