Pricing Considering Salient Thinking
DOI:
https://doi.org/10.54097/fbem.v9i2.9142Keywords:
Salient thinking; Pricing strategy.Abstract
Empirical studies have proved the significant impact of consumers’ salient thinking on their purchasing decisions, especially when there is more than one product in the market. This study establishes a pricing model to study the corresponding pricing strategies when consumers’ purchasing decisions are influenced by salient thinking. Our analysis finds that price salience is optimal when the cost of the high-quality product is low; quality salience is optimal when the cost of the high-quality product is high.
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References
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