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This thesis analyzes the effects that product label certification of Fairtrade products and the retail format where they are bought by consumers (Supermarkets vs. Discounters) have on the Willingness-to-Pay (WTP) of common grocery store goods. The thesis builds on data obtained from an online-conducted survey where participants had to respond if a determined price point was deemed as cheap or expensive to them and based on the average reaction times of their answers we determined the individual WTP. Two-way ANOVA analysis were performed with this data and some interesting findings were discovered: while a difference can be observed in consumers WTP for goods depending on the retail environment where they are acquired, there is no evidence of multiplicative effect of product labeling and retail format.
Forecasting demand is a mission-critical but non-trivial pursuit in strategic planning for any brand. However, long-established explicit pricing research methodologies suffer from well-described biases, thus posing a significant obstacle to accurate forecasting. One way to tackle this challenge is resorting to implicit measures inspired by paradigms from cognitive psychology and neuroscience. Hence, as carried out with NeuroPricing Online, implicit price research can help identify a consumer's Willingness to Pay (WTP) for a product or service. Consequently, the entire sample´s distribution of WTPs can be converted into a population model of demand vs price. A subsequent model of revenue has, to date, in marketing research, typically been based on indexed values, providing the user of the data with non-intuitive and rather abstract measures. Here, using the case of a Mineral Water bottler, we have integrated the demand model directly in a well-maintained digital controlling tool of said cooperation. Central figures such as gross sales and contribution margin were modelled based on realistic cost and market estimates. Thus, assuming the same conditions, the data leads to a fact-based and accurate prediction of the results of a price change. The insights allow the company to gain concrete insights into the context of its pricing strategy and, if necessary, reposition itself to achieve a competitive advantage. For instance, the pricing model integrated into the controlling tool allows for comparing various bottle types in terms of revenue and contribution margin. As such, the specific impact on the financial performance of, say, a revenue maximising or contribution margin maximising strategy can be predicted.
As the service industry continues to grow in all aspects it is becoming clearer that as consumers have more options companies have to find different ways to distinguish themselves from their competition. One of the ways to do this is pricing, although some firms are still using old forms of pricing most are now gravitating towards newer more unconventional methods.
The purpose of this research was to analyze different pricing strategies and how they affect consumer purchasing behavior. The study looked at new forms of pricing such as Pay what you want, more conventional pricing in the service industry which was Dynamic pricing and a controversial form of pricing which was partitioned pricing.
This thesis contains 6 chapters. The first chapter will be an introduction and literature review, Chapter 2, 3 and 4 will represent the different pricing mechanisms respectively Chapter 5 will compare and summarize the pricing strategies and Chapter 6 will provide the conclusion and limitations
This Thesis comes to the conclusion that different pricing strategies invoke different behavioral characteristics in consumers. Pricing strategies can either affect consumer behavior negatively or positively. Pay what you want pricing influences consumer behavior the most in a positive way whilst Partitioned pricing will cause increase consumers’ willingness to purchase a service. Traditional methods such as dynamic pricing affect consumer behavior to a lesser degree. In comparison with the other forms of pricing does not affect consumer behavior positively.
Pricing
(2017)