Many consumers don't have the information or knowledge to know if they are paying a high or low price for a certain product. "They don’t have the time, ability, or inclination to research different brands or stores, compare prices, and get the best deals. Instead, they may rely on certain cues that signal whether a price is high or low." Marketing: An Introduction for Education Management Corporation, 10th Edition (Ch 9 Pg 42)
Pure Perfection Vodka will not make a fool out of consumers. We believe our pricing is worth every penny. At $27.99 a bottle, Pure Perfection is cheap enough for consumers to afford, but just enough to seem luxurious. Our vodka pricing is purely strategic. "...some consumers will see the $299.99 as a price in the $200 range rather than the $300 range. The $299.99 will more likely be seen as a bargain price, whereas the $300 price suggests more quality." Marketing: An Introduction for Education Management Corporation, 10th Edition (Ch 9 Pg 42)
"With promotional pricing, companies will temporarily price their products below list price and sometimes even below cost to create buying excitement and urgency." Marketing: An Introduction for Education Management Corporation, 10th Edition (Ch 9 Pg 42) No promotional pricing will take place in this company, however. Promotional pricing is often negative for companies. If it is used too frequently, consumers will wait for brands to go on sale and only purchase according to who has what for a deal.
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