Vanshika Sahu

A Comprehensive Analysis of Consumer Responses in Marketing and Pricing

Started Apr. 15, 2024

Abstract or project description

There are many different types of consumer responses and behaviors, ranging from the temperature premium effect to status signaling through wealth, that can be found in every industry. By analyzing and understanding these behaviors, corporations can create effective marketing and pricing strategies that build long-term loyalties and trust within their consumer bases, all while turning profits. This paper delves into different behaviors (physical, sensory responses, the perception of options or choices through differing preset defaults, the mental accounting of sunk costs and subsequent expenditures, and the desire to signal status through the material display of wealth) and formulate respective potential strategies for the use of companies.