How is it that Walmart does
a great job of projecting a low-price image even though their items are not
always the lowest? And why is it that Whole Foods can't
shake the misperception that their prices are always higher? The answers are
that merchants understand and manage very concrete strategies that, intended or
not, send pricing expectation cues to consumers. Of course, this has
a direct impact on the perceived value of any special or deal a consumer
evaluates.
The Harvard Business Review has summarized an academic study that addresses these pricing expectation cues. For example, does a store's high volume = low cost? Not necessarily. Do shopping frills = high cost? Not necessarily. Do unconventional products = high cost? Not necessarily. Understanding these cues and the related values of specials is vital as merchants compete with online sellers while consumers can easily check pricing via their smart phones
Click To Harvard Business Review Summary
The Harvard Business Review has summarized an academic study that addresses these pricing expectation cues. For example, does a store's high volume = low cost? Not necessarily. Do shopping frills = high cost? Not necessarily. Do unconventional products = high cost? Not necessarily. Understanding these cues and the related values of specials is vital as merchants compete with online sellers while consumers can easily check pricing via their smart phones
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