Step 1: Consider how the psychology of pricing affects you. Think of a recent in

Question

Step 1: Consider how the psychology of pricing affects you. Think of a recent instance where you were influenced by a pricing tactic. This could be seeing a "2 for 1" offer, a special coupon discount, a time when something was advertised at a particular price but then not available, and the like Consider how you came to learn about the pricing tactic and your initial reaction.

Step 2:Describe the instance you considered for step 1, analyzing your emotions and feelings. Were you happy with the offer? Did you feel misled or cheated? Did you experience mixed emotions? Speculate on what the company was trying to achieve with the pricing tactic. Do you think that it benefitted or hurt the company overall? How did this instance affect your view of the company? Of the company's competitors? As part of your post, discuss price adjustment considerations that the company may or may not have acted upon. Include legal and ethical issues that may have resulted from—or been avoided—by company's pricing such as predatory pricing, bait and switch, loss leader, and other such tactics.

Explanation / Answer

A pricing tactic that i recently came across is when a saw an advertisement hoarding that mentioned "Buy 2 Get 1 Free" of dress materials. Yes, to be honest I was attracted by the hoarding and this made me to visit the showroom and have a look at the dress materials.

But to my astonishment I found that all the dress materials were priced high than the price that was charged a month before the offer. This tactics of the company made me feel cheated. The company has adopted a tactics of charging the price the price tags of all the dresses wherein the price of two dresses are equivalent to the price of three dresses before the offer. When ever there is an advertisment annoucing discounts and freebies, we need to be a bit attentive and check if the rates are acceptable.

This will definitely affect the image of the company since I personally made up my mind that the company is involving in cheap business tactics in the name of discount offer. When one shop annouces a discount offer it will also tempt the other shops to give discount offers so that they are able to grab the market share and attract consumers. So it is the consumers who should be careful while being exploited by these kind of offers.

The company is ethically wrong but on the business grounds all companies are here to make profits. When this fact is considered we need to accept that not all companies will act in the best interests of the consumers. There are companies that might try to make the best use of the environmental and market opportunities. These cannot be legally battled upon, but the consumers will have to be aware of the pricing tactics of the companies and should identify a right time to purchase. Tale for instance when there is off-season sale, the purchase can be made since the stocks will have to be cleared and this is the time when real discounts will be made in order to clear out the stocks. A smart consumer should be able to act accordingly and make wise decisions based on the market conditions.

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