E&E Lecture Notes: Consumer Behaviour
This week the lecture focuses on two central questions. How do people make decisions and how can these be influenced?
Research has proven that people are often uncertain of their preferences when faced with a choice between two products. This means that people are often at their most susceptible to incentives at the point of making decisions between purchases. This means that clever planning of pricing, packaging and placement can have a significant effect on popularity of products.
Examples of Psychological Pricing:
Psychological pricing: £2.99 is a psychological as people will always view this as cheeper than £3 pounds.
Prices with smaller font sizes used to present the pennies make consumers concentrate on the first number.
Prices that are just short of large round numbers like £100 or £1000, often appear cheaper in the minds of consumers as round numbers are often set as barriers for spending. Offer £950 or £95 to incentives sale.
Finish adding notes from lecture notes.