U.va. Experts share the worker who matters to what is the price when we think about buying something
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How strong is the way the price is announced and delivered to customers when they think about a purchase?
The way the price is announced and informed of customers is equal to the same strength as the price alone for consumers who are considering conducting a purchase, according to a researcher at the University of Virginia.
Derek Davis, a professor of trade at the University of McCaine at the University of Virginia, said people do not usually treat prices and decrease in the same way.
He said that something like a 10 % discount may not be enough to carry someone to buy something they have not planned to buy, but the older person can lead the person to “feeling the need to make this purchase, because it is a good deal.”
But high prices, he said it is often explained as more extreme. Davis said the small increase, such as a 5 % egg bump or gas “was really painful, so changing how people think about it.”
As a result, in times of economic uncertainty, Davis said that companies may consider new ways to frame prices and deals. He said that prices are historically, when prices rise, companies turn to shrinkage. Either the packages or the amount in the package decreases over time, but the price usually remains the same.
“This has done somewhat, but I was reading modern reports about people who open desserts of fun, and there are only one or two there when there is 10. So I reached the point of reducing the size of the package to keep the price stable,” Davis said.
Shoppers usually not notice whether the milk carton is 64 ounces is actually 58 or 59 ounces, but they may run out faster, which led them to capture the tactic, Davis said.
He said that sometimes, companies will offer new brands with a lower price, hoping to return the customer.
“There are many cranes that they can withdraw to try to reduce prices,” said Davis.
When prices rise, Davis said that shoppers do not want to buy things or turn into different stores or search for cheaper brands.
On the contrary, he said: “If people are more aslaw and think about the definitions and that prices will only increase in the future, they may go forward and buy more or some things that they may have postponed until the end of the year.”
Davis said the reference pricing also plays a role in whether someone is buying something. Remember that something is used for cost for a long time may make it more expensive at the present moment.
“We don’t really want to change those reference prices, or it’s really difficult to do it in our memory,” said Davis. “We are not good in updating it.”
Davis said that most people do not think about spending money in an objective way, which also affects spending habits.
“If it is $ 5 for eggs, this is a really painful thing to pay,” said Davis. “If it is $ 5 for something fun, then this looks completely different. We have these other mental accounts that we use to think about things.”
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