Marketing 2014 17th Edition by William Pride,Ferrell

Exercise 2

Customers' interpretations and responses regarding a product and its price are an important influence on marketers' pricing decisions. Perceptions of price are affected by the degree to which a customer is value conscious, price conscious, or prestige sensitive. Discuss how value consciousness, price consciousness, and prestige sensitivity influence the buying decision process for the following products: a. A new house. b. Weekly groceries for a family of five. c. An airline ticket. d. A soft drink from a vending machine.