Question

Subject :- Marketing

You may have seen examples of pricing that seem to be designed to confuse consumers, and other pricing tactics that just seem unfair (for both consumers and smaller competitors). Discuss at least one real-life example (from your perspective) of this kind of tactic (use appropriate marketing terms/concepts as discussed in the book).

Answer 1

Our supermarket visits can be taken as an example of marketing confusion. We can see juices from various brands in the fruit and vegetables aisle. These packaged fruit juices, however, are usually placed near real fruits. This provides a sense of natural juices.Instead, the truth is that 96% of them contain additives and other ingredients that are not beneficial to the body. However, as many clients purchase these types of products with the concept of improving their health, it does succeed in generating confusion. Even customers can be confused about which product they should purchase. Packaged fruit juice or fruit juice? Based on this confusion, marketers take advantage and push the advantages of fruit juices over natural fruits.

Psychological pricing often employs odd-sounding prices to convey a sense of urgency and value to consumers. Products that sell for $4.99 or $9.99 are good examples since an argument can be made that consumers must cross a psychological barrier to pay $5 or $10 instead. It's a microscopic difference, but this is is why the strategy is called psychological pricing. Prices that end in 5, 7 and 8rather than being rounded up are other manifestations of this strategy, suggesting to consumers that products are priced at their absolute lowest possible level.