In other words, although the price of the product is closer to US$30.00, several customers would tend to believe the price at range of US$20.00 (Kaser & Oelkers, 2007). Following is the two versions of advertisement of one particular product i. men’s shoe of namely Nike.Price is simply a method for quantifying the value of products being exchanged. With respect to Nike sports shoes, the perceived value are comfortable products, great appearance and quality. From analyzing the pricing strategy, it has been found that most of the customers perceive odd prices are cheaper than even prices. The perception is much stronger for consumer products such as sports products. This tendency of pricing account for the perception of saving and the misunderstanding that prices in odd numbers is much cheaper than even number. Such customers tend to perceive that they are saving money, which is a strong tool for organizations for developing pricing strategy. Nevertheless, it is worth mentioning that odd pricing do not basically results in generating sales more than the forecasted demand (Asamoah & Chovancova, 2011).The preference of customers for odd pricing is also accredited to the outcome of conditioning of market in order to influence consumers. A reason, which explain the preference for odd pricing from the viewpoint of purchasers is that such prices tend to stimulate a perception of discounted price in comparison with even price. Thus, the underlying assumption of odd pricing is that money saving can impose extensive impact on purchase intention of people. Indeed, saving is regarded as great influential factor for making purchase decisions for consumer goods products. However, while purchasing sports shoes such as Nike, the perceived value for customers are less than on saving money and more than on attractiveness and comfort. With respect to reputed sport brand like Nike, monetary saving is not only the perceived advantages of promotional appeal. Still, monetary saving through odd pricing provides certain intrinsic simulation and can fulfil the requirements of the customers regarding quality as well as price. Thus, it is presumed that customers are highly sensitive to certain prices namely odd prices and therefore considering this pricing strategy, i. using even prices would lead to lowering the demand of the Nike men’s shoe product. With respect to the perceived quality, there is low level of
Asamoah, E. S., & Chovancova, M. (2011). The influence of price endings on consumer behavior: an application of the psychology of perception. Universitatis Agriculturae Et Silviculturae Mendelianae Brunensis, LIX(7), 29-38.
Dodds, W. B., & Monroe, K. B. (1985). The effect of brand and price information on subjective product evaluations. Advances in Consumer Research, 12, 85-90.
Kaser, K., & Oelkers, D. (2007). Sports and entertainment marketing. United States: Cengage Learning.
Pride, W. M., & Ferrell, O. C. (2004). Marketing: concepts & strategies. India: Dreamtech Press.
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