Do you think if a product promotion has reached you for a product that you might potentially be interested in and the price seems "too high" then the target market in this instance has been missed or perhaps some part of this strategy is price conditioning with end consumers ?
Acquisti, Alessandro and Varian, Hal R. (2005) â??Conditioning Prices on Purchase History.â??, Marketing Science, 24(3), pp. 367-38© BrainMass Inc. brainmass.com July 21, 2018, 4:13 am ad1c9bdddf
I have outlined an response for you. I will leave the conclusion to your thoughts and any additional information you may think is necessary to add from your lectures and texts.
Since price conditioning is usually based on some prior knowledge the merchant has with the customer or group of customers, this could be a strategy well received by both sides. For some, certainly, there will be opportunities missed, but a good product, well researched by the marketing department will have some prior knowledge and unspoken agreement between the seller and the buyer.
Use of prior business is common. Online and in stores and other setting, the consumer leaves behind information about previous purchases. Using a customer rewards card, a credit or debit card, an online shopping cart, leaves behind indications of preferences, pricing, searches, and final choices. Repeated buying from a seller can help tailor sales to the customer, because the customer ...
The principles of marketing products are examined. Conditioning prices on purchase history are provided.