Pricing is the process of determining what a company will receive in exchange for its products.
Traditionally Price has been a major determinant of a buyers choice.
Traditionally Price has been a major determinant of a buyers choice.
Consumer Buying Psychology:
Reference Prices: Consumers have fairly good idea of the price range of a product, but rarely do they recollect the exact price. When examining a product, consumers often employ Reference Prices, where the compare the observed price to an internal reference price.
Price- Quality inferences: Many consumers use price as an indicator of quality. Some brands adopt exclusivity and scarcity as a means to signify uniqueness and justify premium pricing. For ex: Watches, perfumes etc.
Price cues: Many sellers believe that prices should end in an odd number because for example: many customers see an amplifier priced 2999/- in the range of 2000/- rather than rounding it off to 3000/-
But prices ending in 5 or 0 are easier for the customer to process and retrieve from memory.
Also the sign of SALE next to a price is shown to spur demand if not over done. Even limited availability (3 days only) is seen to have spurred sales.
Reference Prices: Consumers have fairly good idea of the price range of a product, but rarely do they recollect the exact price. When examining a product, consumers often employ Reference Prices, where the compare the observed price to an internal reference price.
Price- Quality inferences: Many consumers use price as an indicator of quality. Some brands adopt exclusivity and scarcity as a means to signify uniqueness and justify premium pricing. For ex: Watches, perfumes etc.
Price cues: Many sellers believe that prices should end in an odd number because for example: many customers see an amplifier priced 2999/- in the range of 2000/- rather than rounding it off to 3000/-
But prices ending in 5 or 0 are easier for the customer to process and retrieve from memory.
Also the sign of SALE next to a price is shown to spur demand if not over done. Even limited availability (3 days only) is seen to have spurred sales.
Pricing of Kissan Jam
At the time Kissan was formed, consumers had limited purchasing power. Thus Kissan adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money.Despite competition, it ensured that the product mix and the sequence in which Kissan introduces its products is consistent with the core philosophy of providing jam at a basic, affordable price to appeal the common masses. This helped Kissan Jam to create its brand image in the household sector of the society.
Therefore the current price offered are:
- 15 gms Sachet- Rs. 2
- 70 gms Squeeze tube- Rs. 24
- 100 gms Tub- Rs. 24
- 200 gms Bottle- Rs. 48
- 500 gms Bottle-Rs. 107
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