How Smart Pricing Action Can Influence How Much Consumers Spend on Big Purchases

Consumers are often clueless about what a reasonable budget should be; this is where defining customer value & supplying a reference price can work wonders.

For any big purchase, whether it is a television, an automobile, or an engagement ring, there are numerous available alternatives. No consumer can consider even a fraction of them meaningfully. They must, of necessity, use simple decision heuristics to drastically pare down the options to a manageable handful. Decision researchers call this process pres…