The Key Points in This Chapter
- Price helps shoppers make purchase decisions in two main ways; first it helps them understand the expected quality of a product relative to a consideration set, and second it helps them allocate their budget.
- It is rare that even half of all shoppers are able to accurately recall what they paid for a product even seconds after buying it. Absolute prices are not something we choose to clutter our memory with, instead we rely on the retail setting to help us understand magnitude differences in price between products.
- We do not process all of the numerical information in a price. We use shortcuts in reading and understanding prices in the same way we do with other elements of the marketing mix that confront ...