Absolute Value
Posted In: Apple, Asus, book, brand, branding, Emanuel Rosen, Fortune, marketing, Michal Lev-Ram, New York Times, Quentin Hardy, Stanford, The New York Times
Comments: One Response
What happens when consumers have access to (nearly) perfect information on product and price? The father of consumer decision analysis Itamar Simonson.
The tier price model was perfected by Sam Walmart.
He would place $5.00 no name toasters that wholesales for $5 beside a $12.00 name brand toaster that also wholesales for $5.
The consumer would perceive the higher priced toaster as a good deal when in fact would cost less at a competitor.