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Discussion: How Price Points Can Trick Us Into Making a Purchase | Utpal Dholakia

Utpal Dholakia, George R. Brown Professor of Marketing at Rice University.

What exactly is a price point and how does it affect consumer behavior?

It turns out that price points are anomalies in the demand curve that occur due to entrenched consumer ideas of what the normal or usual price for a product should be.

It’s very hard to create a price point, you can only discover them and then use them creatively for pricing decisions.

Top Comments

Marco Bertini, Associate Professor and Department Chair, Marketing at ESADE
They recently tried to bring this back, but inflation pushed it to $6. Unsurprisingly, it seemed to backfire, as the $5 reference point was still entrenched in people’s minds.

Pedro Piccoli Soares, Revenue Management @ The HEINEKEN Company
What if, in this Subway case, the price was set at $4 ? Do you believe that there would be a sales volume increase and profits decrease? Regards!

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How Price Points Can Trick Us Into Making a Purchase | Utpal Dholakia.

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