Pricing Method Of "Price Promotion" Means

The reality of business is competition.

In modern commercial economy, the information between manufacturers is more symmetrical. You can also sell technology. I can also sell things that you can sell, and all of them are red sea. But the blue ocean is like a mirage.

When the product is more and more homogenized,

When the business is ineffective, the manufacturers have to sacrifice the "promotion" magic weapon, and the sky and women scatter their silver and face each other to fight.

This is the reality of business competition. In China, this reality is even more normal. Wherever you enter, you can see the promotion poster everywhere, and the excuses of sales promotion are all kinds of strange things. From "Celebrating the Mid Autumn Festival" to "New Year's happiness", from "company 5th Anniversary celebration" to "Shenzhou five flying off the whole country jubilation", there are many different kinds of things. Sometimes, I almost doubt whether I accidentally saw such promotional reasons as "Celebrating the price of a wife's mother's birthday" or "the successful listing of our company in Hongkong".

In theory, "promotion" can be basically divided into two categories: "sales promotion" and "price promotion".

The two methods have their own advantages. The similarity lies in the short-term resource consumption war, so as to attract consumers or attack competitors, so they can only be short-term strategies.

After the promotional period is over, the gift is no longer given away. The time limit for the sales promotion is over, and the price of the commodity is also necessary to return to normal level. Otherwise, the profit margin of the manufacturer will be seriously affected.

But at the same time, when customers taste the sweetness of sales promotion, based on the rational expectation theory, their minds will inevitably form new expectations, especially the "price promotion". When prices have to pick up, customers may not be able to adapt to the psychological gap between the new price and the expected price, thus reducing the willingness to re patronize.

If such a thing happens, it is the standard "stealing a chicken without eclipsing rice".

Yes

The most attractive method of "promotion pricing", in other words, can induce a relatively large purchase intention during the promotion period. At the same time, after the end of the end of the price return to normal level, which kind of "promotional pricing" method has the smallest sequel, that is, it will not reduce the expected price of the promotional product, so as to protect the brand value of the product.

They passed four scientific experiments in order to observe the pricing method of "price promotion", whether it was a good expression of "discount ratio" or "directly marking the price after discount".

The author first collects some known facts in the past scientific research.

1, the greater the price range of sales promotion, the more attractive it will be.

Buy Promotional items.

2, about 77% of consumers will notice the price promotion information of their manufacturers, and calculate the actual selling price after the price reduction in the brain.

3, after the consumer has gone through the price promotions, the remaining impression of the price may only be left with the rough concepts of "more" or "less", and forget the real price reduction.

4, the end of price promotions will result in:

(1) customers will lower the brand value of the promotional product.

(2) let customers develop the habit of waiting for price reduction;

(3) customers will lower the price expectation of the brand, thereby reducing the willingness of customers to buy the same commodity or even the same brand when they do not sell at a reduced price.

5, when the price markup exceeds the 20% of the commodity price, it will reduce the preference of the customer after the end of the sale promotion.

6, when consumers are not easy to perceive that the manufacturer is promoting the price reduction, or is not easy to grasp the actual price reduction, consumers will not lower the expected price of promotional products after the end of the sale promotion, so the promotion will not hurt the brand value of the product.