influenced by price and non-priceConducting a competitor analysis shows what analogues of the product are presented on the market, their cost and volumes. Marketers often use the SWOT analysis method.Marketing research that allows you to determine target groups of buyers, as well as demand factors for specific groups of goods that are of interest to the organization’s expert.
Correlation and regression analysis allows us to forecast changes in demand and price and non-price factors influencing it.
Frequently Asked Questions about Pricing Factors
We answer the most frequently asked questions on the topic of price factors.
How do price demand factors change consumer behavior?
Since it has become known through experience that c level contact list the main criteria that people pay attention to when choosing a product are price and saving financial resources, it is necessary to study all factors that influence changes in demand through the prism of the consumer savings model.
An example of the work of price and non-price factors of demand can be the purchase of goods on promotional offers and discounts. This strategy is one of the most popular for saving resources. The buyer can clearly formulate his need, including among goods in the high-price segment of the market, for the purchase of which he has a desire and need.
With the help of such tools as promotions and discounts, rep groups are used as a web standard it becomes possible to switch the consumer’s attention between brands that compete with each other. For example, if several companies simultaneously produce Krakow sausage, then the buyer is more likely to choose the one that is on sale.
What is the Veblen effect?
The Veblen effect is a demonstration of the consumption of goods that are inaccessible to a wide audience due to their high price. Therefore, according to this effect, the purchase of such goods should make a person more prestigious and status in the eyes of his environment and in his own.
For example, when a schoolchild really
wants to buy an expensive mobile phone, he pursues the goal of “growing up” in the eyes of his peers, becoming a more popular person at school and raising his status and his own opinion of himself as a person. The more expensive the purchased phone is, the higher the status of the person who bought it rises and the stronger the desire for this purchase is.
In this case, the psychological moment of
the Veblen effect exceeds the effect of the real income effect and the effect of substitution with a similar product. Such a buyer evaluates first of all not the quality of the product and its usefulness for life, but the prestige and significance of the price that he is willing to pay for the purchase of this product in the opinion of the people around him. When the Veblen effect operates, the rule applies: the higher the price of the product, the stronger the desire to buy it.
How to increase demand and revenue without raising prices?
The strategy of most manufacturers remains stable price fresh list containment for goods, due to which demand increases. An excellent example is the well-known McDonald’s restaurant chain. Thus, the client does not initially plan a large purchase, but makes it, pursuing the goal of saving money. Sales are growing, which cannot but please the manufacturers.
The constant change in demand for goods is
economic factors. They represent changes in market prices under the influence of competition and the growth or decrease in the cost of complementary and interchangeable goods.
