MindMap Gallery Price strategy and consumer psychology
Consumer Psychology Reading Notes - Price Strategy and Consumer Psychology
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The ice hockey schedule for the Milano Cortina 2026 Winter Olympics, featuring preliminary rounds, quarterfinals, and medal matches for both men's and women's tournaments from February 5–22. All game times are listed in Eastern Standard Time (EST).
This Valentine's Day brand marketing handbook provides businesses with five practical models, covering everything from creating offline experiences to driving online engagement. Whether you're a shopping mall, restaurant, or online brand, you'll find a suitable strategy: each model includes clear objectives and industry-specific guidelines, helping brands transform traffic into real sales and lasting emotional connections during this romantic season.
This Valentine's Day map illustrates love through 30 romantic possibilities, from the vintage charm of "handwritten love letters" to the urban landscape of "rooftop sunsets," from the tactile experience of a "pottery workshop" to the leisurely moments of "wine tasting at a vineyard"—offering a unique sense of occasion for every couple. Whether it's cozy, experiential, or luxurious, love always finds the most fitting expression. May you all find the perfect atmosphere for your love story.
The ice hockey schedule for the Milano Cortina 2026 Winter Olympics, featuring preliminary rounds, quarterfinals, and medal matches for both men's and women's tournaments from February 5–22. All game times are listed in Eastern Standard Time (EST).
Price strategy and consumer psychology
Section 1 The psychological function of commodity prices
1. Main factors affecting commodity prices
(1) The impact of value on price
The value of goods is the most direct factor affecting price
(2) The impact of supply and demand on prices
When there is an oversupply of goods in the market, prices will decrease accordingly
On the contrary, when the supply of goods is not in demand, the price will increase accordingly.
(3) The impact of market competition on prices
Market competition is an important factor that affects companies' price setting
According to different market competition conditions, companies should adopt different pricing strategies
(4) The impact of cost on price
The impact of product cost on price is that cost is the minimum limit for enterprise pricing
Only when the price of goods is higher than the cost can the company make profits and continue to operate.
2. Reflection of the psychological function of commodity prices
(1) Function of measuring commodity value
Due to the influence of price psychology, many times, consumers are willing to buy products with better packaging and higher prices. For some cheap products and processed products, the greater the discount, the more consumers feel that the quality is not good, and the less they dare to buy. , this is the embodiment of the psychological function of price
(2) Comparative function of consumer self-awareness
The analogy function of consumer self-awareness is that commodity prices not only reflect the value of the commodity, but also reflect the social psychological value to a certain extent.
Consumers are self-aware of comparison functions, which mainly include socioeconomic status comparisons, cultural comparisons, and life interest comparisons.
Self-awareness is based on meeting social needs and self-realization, and pays more attention to the social symbolic meaning of commodity prices than your psychological functions.
(3) Function of adjusting demand
The price of goods is affected by the relationship between supply and demand, so it has the function of regulating demand
When the price of a certain commodity rises, people are nervous about purchasing and believe that the price may rise, which stimulates their psychological desire to shop; conversely, when the price of a commodity drops, consumers expect the price of the commodity to continue to fall. psychologically, you will have a wait-and-see mentality and will not buy the product for the time being.
Section 2 Consumer Price Psychology
1. Consumer price psychology characteristics
(1) Habitual psychology
The habitual psychology of price refers to the habitual understanding of commodity prices formed by consumers due to multiple perceptions of prices during repeated purchases.
When companies adjust prices, they must consider consumers’ habitual price psychology and be cautious about price increases.
(2) Sensitive psychology
Sensitivity psychology is the extent to which consumers react to changes in commodity prices.
Usually, in the early stages of product price increases and decreases, consumers react strongly and will double their purchases or become resistant. However, as time goes by, consumers' psychological endurance will gradually increase and they will become less sensitive to price increases or decreases. Not sensitive
(3) Tendency psychology
Tendency psychology refers to the consumer's attitude of rejecting or accepting the price of the product during the purchase process.
(4) Receptive psychology
Feel confidence and rationality, consumers’ perception of product prices
2. Consumers’ Price Judgment
(1) Methods of price judgment
Compare apples to apples
Same price comparison
Appearance comparison
Service comparison
(2) Factors influencing price judgment
Consumer's economic income
Consumer Price Psychology
Features of the product
urgency to consume
Section 3 The psychological function of product pricing and price adjustment
1. Product pricing strategy
(1) Skimming pricing strategy
advantage
At the beginning of the launch of new products, consumers lack a rational understanding of them and use higher prices to increase their value and help expand the market.
The price is high, the profit is large, and the investment can be recovered in a short period of time. By the time competitors join, the company has already made huge profits.
Great initiative. Because the price is set too high, you are in an active position in the competition and can adjust the price at any time.
shortcoming
Putting it into the market at a high price brings greater risks. The product image may not be established yet and sales growth may be slow.
High prices and high profits will soon attract competitors, forcing prices down
(2) Penetration pricing strategy
advantage
The product is easily accepted by the market and can quickly open up sales and increase production.
Due to low prices and small profits, it is not very attractive to competitors, which can reduce competition, make it easy for companies to obtain, and maintain a high market share.
It can enable enterprises to operate stably and gain profits in the long term.
shortcoming
Investment in new products takes a long time to recoup
If competitors appear, the company will be in a relatively passive position
(3) Custom pricing strategy
Advantages: Make consumers feel that the price is reasonable and easy to accept, which is conducive to maintaining the stability of consumption.
Disadvantages: Consumers are generally highly sensitive to price changes of such goods. Therefore, price adjustments for such goods should be very cautious. Once the price is raised, it will destroy the long-term consumption habits of consumers and make consumers switch to Buy other items
(4) Mantissa pricing strategy
Advantages: The clever arrangement of numbers makes consumers feel that the price is low. For example, ¥99.9 will feel cheaper than ¥100.
Disadvantages: Don’t set the price too complicatedly, otherwise the effect may be counterproductive.
(5) Integer pricing strategy
The integer pricing strategy is exactly the opposite of the mantissa pricing strategy. It is based on the psychology of consumers' demand for certain products with particularly high or low prices.
High-priced goods can be easily remembered by consumers and meet the needs of consumers' social status.
For low-priced goods, the change can be reduced in sales, giving consumers the feeling of cheap prices.
(6) Promotional pricing strategy
The purpose of this pricing strategy is to use low prices to attract consumers to purchase goods or repeat purchases of cheap goods
While purchasing, consumers purchased other products at normal prices, such as discounted products often launched by supermarkets and special dishes launched tomorrow by restaurants.
(7) Reputation pricing strategy
This pricing strategy is generally adopted by companies with higher reputations and famous brand products with higher reputations.
The purpose is to satisfy one part. The need for consumers to display symbols of their social and economic status satisfies a psychological need to show off.
(8) Discount pricing strategy
This strategy is for merchants to give consumers a discounted price on the basis of the original price, so that consumers can fully satisfy their psychology of buying cheap goods, and can effectively encourage consumers to buy goods, and even make continuous purchases.
(9) Differential pricing strategy
A company sells the same product or service to different consumers at different prices
Enterprises set different prices for products and services in different locations
Enterprises set different prices for products and services in different seasons and periods.
2. Psychological strategies for price adjustment
(1) Consumers’ psychological reactions to price adjustments
Consumers’ psychological reactions to price increases
The price of the product has increased, and the price may continue to increase. You may pay more currency for future purchases, so you should buy as soon as possible
The product is a best-seller. If you miss the opportunity, you won’t be able to buy it.
Good value, good quality, good performance, value for money
Consumers’ psychological reactions to price cuts
The goods at reduced prices are of poor quality, backward in style, defective, and are unsaleable products.
The reduced-price products are obsolete products with outdated styles.
The company has operational problems and is difficult to maintain
The price will fall further, wait until the price is lower before buying again
Buying goods at reduced prices is demeaning and will be ridiculed by family and friends.
(2) Psychological strategies for price adjustment
price increase strategy
Timing of price increase: The period of price increase is generally chosen during holidays or days of special significance. Consumers are relaxed and have relatively less resistance to price increases.
Price increase range: Low prices do not have to be as small as possible, and should not exceed the psychological tolerance range of consumers
price reduction strategy
Price cut timing
Generally, prices should be reduced when products enter the late stage of maturity, and prices of new products should be reduced when they enter the late stage of imitation.
Seasonal products should be reduced in price when the season changes.
degree of decrease
Companies fully explain to consumers the reasons for price reductions
Price reductions must be for products produced by companies with high credibility
After price reduction, consumers can maintain sufficient trust in the product
Price reductions generally focus on daily necessities and consumer goods, rather than symbolic products that will affect consumers' social status.
Commodity price reductions should not be too frequent, otherwise it will cause consumers to have distrust in commodity prices and also create unrealistic expectations for price reductions.