Recap for Discussion on 09/11/2011

Dear Participants,
This is the recap of discussion on 9th November.
Pricing:
We started with the concept of pricing, what exactly it reflects. It is the term which deals with product depending on factors which include cost as well as margin of profit per unit sale of that product.
Common mistakes which often occur in Pricing,

Cost is determined & traditional industry margins are considered which instead to be considered on current product & situation of market.

Failure to revise price to deal with changes in market.

Setting prices of product without taking into account the role of marketing mix plays.

Failure in variation of price of product.

Then the discussion moved to consumer psychology and pricing which includes threshold planning. Consumer thinking revolves around prices for any product right from pens to cars. So this thought process is very important factor to be considered when prices are set.

Following points are important,

Reference Prices

Price Quality inference

Price endings

Price cues