500 words please!!!! Explain the following statement giving examples: â€œWhen we look at buying decisions, it is...

90.2K

Verified Solution

Question

Operations Management

500 words please!!!!

Explain the following statement giving examples:

â€œWhen we look at buying decisions, it is not price levels butprice perceptions that may be more important. Price perceptions canbe molded and modified by sellers, based on the use of advertisingor other cues that may determine our reference prices. After thisthe â€˜codingâ€™ of the price as a gain or lossâ€ is altered. By framinga price as a â€˜gainâ€™ the seller induces purchases.â€

Answer & Explanation Solved by verified expert

4.2 Ratings (586 Votes)

Perceived prices as opposed to price levels are reference points that customers make for a product based on experience Experience in terms of price levels that they have come across for similar products Every time a customer looks at a price point there are two opposing thoughts that crosses the mind of See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member