We propose a methodology to calculate the price of psychological acceptability. The psychological price for a given product is the price that one is willing to pay for the largest number of buyers. This is not necessarily the lowest price. In fact, a price that is too low can lead to the consumer associating the product to poor quality. A price that is too high can be a hindrance, because it will be deemed to be unjustified. The psychological price is optimal within a limited range by an income effect and an effect of low quality.
Some researchers, such as Adam and Stoczel have developed a method to determine the price or price range that is acceptable to as many consumers as possible. They use a method by which the survey results lead to a function that gives a sale price variable corresponding the share of the open market.
Tags: price of psychological acceptability, psychological price
[...] ♣ Not always reliable because respondents are not in a purchasing situation. ♣ The psychological price maximizes the quantities sold but does not maximize sales or even the margin. EXERCISE The group performs a BERCHET partnership with an industrial GENERATION 5 in order to realize a project to conquer the market of multimedia toy. This merger is a revolutionary product that allows the child to play with the computer “keyboard babies." Tests are helping to make the product "the keyboard babies."The company; BERCHET prepared a questionnaire that required to be administered to a sample of 600 households in the Rhone-Alpes region to determine the psychological price. [...]
[...] We can draw a graph, for each, to know the percentage of people who consider it acceptable, that is to say neither too high nor too low. This percentage is given by the difference between the cumulative curve of minimum prices and the maximum prices. The psychological price optimum corresponds to the largest gap between the curve of minimum prices and the maximum prices. The price of acceptability is a valuable tool in a market study. The limitations of the method ♣ It is only suitable for products where price is a factor in the purchase (consumption). [...]
[...] The optimum psychological price is within a range bounded above by an income effect and an effect of low quality. Some researchers, such as ADAM and STOCZEL, have developed a method for determining the price or the price range that is acceptable to as many consumers as possible. They used a survey which's results led to a function that gave a sale price variable, the corresponding share of the open market. The steps It is a representative sample of potential customers of the product. [...]
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