Premium Essay

How to Stop Customers Form Fixating on Prive

In: Business and Management

Submitted By tsakulrompochai
Words 560
Pages 3
How to stop customers from fixating on price

This article aims t tackle the problem that nowadays many customers are paying the most attention to the price when they purchase products or services. The article addresses the problem that most customers prefer the products that have the lowest price even though the value of the product is less compared to other products with higher price. This has caused products or services with higher innovation or value to be left uncompetitive. As a result the author proposed three main ways to price products or services that can mitigate the problems stated above. First is to use price structure to make it call attention to the value of the product or services. In order to do this, companies must revise its pricing structure or the basis that companies price various offerings. The key to do this is to vary price according to what’s most distinctive about the offering rather than makeup of the product or service itself. This will allowed the products get out of head-to-head price competition and allow it to compete on the personal relevance to customers of the value it provides. This strategy has been used by Goodyear company as the company had problem that customers were unwilling to pay a premium for the innovations the company introduced to extend tread life. It solved the problem by pricing its various models on the basis of how many miles they could be expected to last rather than their engineering complexity. This highlighted the advantage of those innovations for customers and taught them a new way to compare offerings that was perfectly aligned with the company’s value proposition. The second strategy toward solving the problem is to willfully overprice to stimulate curiosity. The implication for the strategy is that for every purchase decision, there’s a price range above what potential customers say they are…...

Similar Documents

Free Essay

Hrm for Customers: How to Manage Customer Involvement for Maximum Innovative Capability

...HRM FOR CUSTOMERS: HOW TO MANAGE CUSTOMER INVOLVEMENT FOR MAXIMUM INNOVATIVE CAPABILITY 1JM06 – Essay N.F.J. Hubbers 0752194 Eindhoven University of Technology June 4, 2012 Abstract The role of the customer is changing. Nowadays customers demand an even more sophisticated role in the production process. Organizations can benefit from this change in role by using user knowledge in the innovation process. However this change in role has influence on both the existing HRM activities directed at the employees as well on new HRM activities directed at the customers. This research shows most important changes within the HRM functions: Reqruitement, Performance appraisal and rewarding. Key words: Lead user involvement, HRM, customer employee interaction 1JM06 – N.F.J. Hubbers – HRM FOR CUSTOMERS Introduction Within the technical innovation environment we see an up march of the involvement of the so called lead users, which are users of a product or service that currently experience needs still unknown to the public and who also benefit greatly if they obtain a solution to these needs (Von Hippel 1986). New perspectives within organizations have emerged over the past decades focusing on the co-creation of value as more leading companies acknowledge the potential benefits from attracting important stock holders (such as lead users) into the innovation process. Since this involvement results in mutual influence on both the employees within the organization as well on......

Words: 4280 - Pages: 18

Premium Essay

How to Stop Customers Fixating on Price

...How to stop customers from fixating on price Nowadays customers have many options and the most important feature of the product is price. On one hand price increases the intensity of competition in markets, but on the other hand it often damages brand equity and erodes profit margins. Moreover, low price develops low expectations, because customers see price as sign of quality. So, to set a price is very meaningful decision. There are some strategies, which will help you to price products. There are several strategies that can stop consumers from fixating prices. First strategy is to use price structure to clarify your advantage. This means that company should focus on value your product or service deliver than to constant price cutting. Tire’s company called “Goodyear” made a good initiative on this step. Firstly, consumers bought only cheapest tires and were unwilling to pay some extra for the innovation that extends tire’s life. Therefore, “Goodyear” solved this problem by adjusting prices to expected lifetime of a tire rather their engineering complexity. By doing so, company highlighted the advantage of their innovations and taught consumer a new to compare offerings. Second strategy is willfully overpricing products to stimulate curiosity. This basically means that if a company is overpricing some products it can lead consumer to think why this products has higher price than a similar one, what features affect the price. This strategy is used by “Apple” company, which...

Words: 752 - Pages: 4

Free Essay

Importance of Understanding How People Form Perceptions

...Importance of Understanding How People Form Perceptions In the case of Joe Salatino, he is the new president of Great Northern American and he bases the success of his company by the amount of money he pays the employees. The firm’s salespeople sell millions of products each year. The lead person of this telemarketing company believes that spending money on commissions and bonuses is necessary to keep his salespeople motivated. The company uses all kinds of motivational tactics in the salesroom to keep the employees engaged at work. Many of Joe’s top workers earn thousands of dollars a year plus commission, but usually it takes about a year for an employee to build up their clientele. With in the article it goes to discuss how the salespeople go above and beyond to build a strong relationship with the customers. Joe believes it increases sales when the employees for a memorable relationship with the customers. As a result, when Joe is looking to hire new people; he looks for them to have great communication skills, be highly motivated and considerate. Finally, Joe looks for workers that know their strengths and weakness and thrive to take the initiative without having to be direct all the time. In the workplace, perceptions quickly become formed whether accurate or artificial. Perceptions and inaccurate assumptions of work habits, personal relationships are mostly form over company gossip. Joe Salatino needs to explain to his employees that perceptions in the workplace......

Words: 1930 - Pages: 8

Free Essay

How Satan Stops Prayers

...How satan Stops Our Prayers. COMBAT IN THE HEAVENLY REALM by John Mulinde,  Obsteig (Austria) Nov.  2000 www.DivineRevelations.info/COMBAT I want to share with you from a testimony of someone who was saved, someone who had been serving the devil.  And when that man gave his testimony, it so challenged me, I did not want to believe it.  I had to go ten days before the Lord in fasting, asking Him, "Lord, is this true?" And it was at that time the Lord began to teach me what happens in the spiritual realm when we pray.  This man was born after his parents dedicated themselves to lucifer.  When he was still in the womb, they made so many rituals dedicating him to serve lucifer.  When he was four years old, he began to exercise his spiritual power.  And his parents began fearing him.  When he was six years, his father surrendered him to the witches to go and be trained.  And by ten years, he was doing great things in the kingdom of the devil.  He was feared by the normal witches.  He was still a young boy, but he was so terrible in the things he did.  He grew up to be a young man in his twenties with so much bloodshed on his hands.  Killed at will.  He had the ability to go out of his body through transcendental meditation.  And he could levitate.  Sometimes his body would lift off the ground and stay in the air.  And sometimes he could go into a trance, and come out of his body; his body would remain behind, and he would go out into the world, this is called......

Words: 4200 - Pages: 17

Premium Essay

Forms of Conflict and How It Can Be Averted:

...manifest in the form of peaceful bargaining and grievance handling of boycotts or restriction of output, sabotage and above all absenteeism which could be grouped into formal and inform. It should be noted that the absence of strikes does not imply or mean there is no industrial conflict because such conflict could be express latently or covertly. FORMS OF CONFLICT AND HOW IT CAN BE AVERTED: Leadership Style This style of leadership is importance to ensure team work, and creates harmony in a group by connecting people to each other whereby leadership style is being used against the employee.an autocratic leadership style will definitely breeds conflictual atmosphere. Poor Communication Poor communication creates uncertainty between the employer and the employee that leads to stress and conflict. For instance, a worker may be waiting for his employer to deliver key information so they can complete a task on time. If the employer does not respond to the worker's request for specific information or neglects to keep the worker in the loop, the worker may begin to worry that their set target will not be delivered in a timely manner which the employer may use against them in their key performance appraisal. Failure to develop and communicate clear job description will result to conflict. Political instability: Unstable government that often disrupts the career of most workers also instigates workers against constituted authority. Sabotage Sabotage, another form of......

Words: 1322 - Pages: 6

Free Essay

Five Stages of Group Development and How Relationships Form

...Five Stages of Group Development and How Relationships Form When people join a group, he or she may give up his or her independence because of the person was used to working alone and currently has to work within a group to accomplish a goal. To develop a good group there are five stages of development, which are forming, storming, norming, performing, and adjourning. The first step is forming, which occurs when the group first meets, and there can be uncertainty about his or her roles, group goals, and who will lead the group. At this stage the group gets to know one another and start thinking together as a group. The second stage is storming, which occurs when the group members test one another for who has more authority and who will be a follower. This stage can be a long process because conflicts can occur and subgroups form. The third stage is norming, which occurs when the group is in agreement about how the group will run. The group comes together and becomes more of a family, which allows the group to have commitment to the task (McGraw-Hill Education, n.d.).  The fourth stage is performing, which occurs when the group is focused on solving task problems and getting the goals accomplished. Also conflict at this stage is minimum and if there is a problem the conflict is solved without disrupting the whole group (McGraw-Hill Education, n.d.).  Because the group is like family at this stage the group can achieve the goal, which is more that can be done......

Words: 668 - Pages: 3

Premium Essay

How to Stop Being Conscious

...How to Stop Feeling Self Conscious Why do you feel self-conscious? Is it the way you look or the way you think you look? Who is judging you and why do you care about their opinions? This article will provide some strategies to help you decrease feelings of self consciousness that interfere with everyday life. Steps: * Identify what you're terribly conscious about. A certain aspect of your appearance? The twitch in your eye? Your accent? Your Disability? Your intellectual abilities? Make a list of these things and next to each item, write something you can do to improve it. * Figure out who you're trying to please and why. What kind of expectations are making you so self conscious? Is everyone around you picture perfect, or are you comparing yourself to airbrushed models in magazines? Have you convinced yourself that no one else has twitches, or flaws, or trips? Stop for a second and turn that self-criticism outwards. No one is perfect, and you've never noticed their little quirks before, so why would they pay so much attention to yours? Just feel like there's no need to worry and always picture yourself like you know you look and feel good in front of others, but don't think about it too much because it will already be embedded. * Redirect your attention. When you start to feel self conscious, locate a target - it doesn't matter what it is, it may be the bug crawling across the floor - and concentrate on it. What color is it? How many legs? Anything......

Words: 1113 - Pages: 5

Premium Essay

How to Stop Bing Lazy

...HOW TO STOP BEING LAZY Being lazy is a problem that most people in the world have. Some reasons could be physical and psychological. I personally am very physically lazy but also sometimes lazy in the mind to. Sometimes it can affect my everyday activities, and can also prevent me from finishing things that I need to do even if they are really important. A few ways to be more productive and motivated and less lazy would be to eat breakfast, exercise, and get into a routine. Breakfast is one of the most if not the most important meal of the day and it is recommended to eat breakfast every day. By eating a good healthy breakfast everyday it boost brain activity and energy. When eating a good breakfast it is important to not be eating junk food but to be eating fresh fruits, or things that have good nutrition and natural sugars that will give u that boost in the morning. Exercising is also a necessary to maintain a healthy body and mind. By doing the right exercises every day you will be making your heart stronger and bigger. You will also be making your blood vessels more elastic which will help the blood flow more easily through the body which will lower blood pressure. Exercise will also improve blood flow to the brain which will allow the brain to work more efficiently. Sometime when we don’t consistently do something it seems more difficult to do. For example if a kid consistently cleans their room it wouldn’t get that dirty and it would be easy to clean, but if...

Words: 405 - Pages: 2

Premium Essay

How to Stop Customers from Fixating on Price

...In a price competitive mature market the logic behind willful overpricing seems counterintuitive. At the same time, I can well remember that our primary pricing strategy at the funeral home I managed was to be $100 higher than anyone else. This “strategy” is one I have often encountered as well as its evil twin: being $100 lower than anyone else. According to research, customers don’t automatically dismiss the higher price model. Instead, a higher price often seems to motivate them to take a closer look. That closer look could (and should) reveal information they care about that works in your favor. (it bears repeating here that the point of all these strategies is to get consumers focused on value over price) Some of the things I can think of are quality (“your mother never leaves our care”) or reputation, or an unconditional guarantee, etc. In one experiment products were priced at an 80% premium. Subjects were able to recall twice as much product information than the comparison products; this enabled them to cite more arguments in favor of buying the products. “The overpricing also evoked a more passionate response to the products which led to a willingness to pay much more than was originally intended. By contrast, people who were exposed to a premium close to their expectations (10%) or one that was outlandishly high (190%) simply acted according to their pretested inclination…” THIS IS IMPORTANT because most funeral homes in price competitive markets are......

Words: 271 - Pages: 2

Premium Essay

How Primark Keeps Its Existing Customers

...its products, a problem that made it difficult for Apple to set its very different products apart from the rest of the computing crowd. By creating a store strictly devoted to Apple products, the company has not only eliminated this problem but has made an excellent customer-loyalty move. Apple stores are a friendly place where Mac and PC users alike are encouraged to play with and explore the technology that the company offers. This is a space where Macheads can not only get service but also hang out with others who enjoy Apple products just as much as they do. By creating this space, Apple encourages current and new customers to get excited about what it has to offer. Complete Solutions : Apple's products complement and complete each other. Buy an iPod, and you can download music via iTunes. For the average user, most Mac programs are produced by Apple. This sort of control over the entire user process, from hardware to software, strengthens customer loyalty. Apple users generally don't have to stray to find products and solutions they want. Are You a Mac? : Let's face it, Apple is a hip brand. It pushes a strong identification with everything young, up-to-the-minute and smart. Consider Apple's I'm a Mac campaign. The Mac guy is smooth and confident, while PC appears uptight and old. Once you've become smooth, would you want to go back to uptight? Varied Products : Many consumers may not be ready to buy an Apple computer, but they're willing to give gadgets like......

Words: 340 - Pages: 2

Premium Essay

Rhino- How to Stop Poaching

...How would you reduce poaching if a rhino’s horn could be cut and re-grown in 6 years? The horn is cut off while the rhino is chemically immobilized (anaesthetized). The removal of the horn is a non-invasive, non-surgical procedure, similar to cutting one’s hair or nails and should not cause the rhino any pain or injury. Once the antagonist is administered, the rhino can be up and back on its feet within a few minutes.   The risks associated with dehorning include those associated with anesthesia, cutting the horn off too close to growth point and, drugging and handling a very large animal and effects on behaviour.   There are always risks associated with anesthesia. Etorphine\M99, the drug used for immobilizing rhino is procedure is a strictly controlled, high schedule potent opioid. Newer drug combinations and experience have reduced the risks. The current calculated mortality risk for free ranging rhino to < 1%. This procedure should only be carried out by a ‘rhino experienced’ wildlife vet and team using the correct protocols and taking the relevant precautions, should perform the dehorning. Due to the continual growth of the horn, dehorning may need to be repeated every 18 – 24 months. Repeated exposure to anaesthesia may contribute to short and long-term health problem; and increases the mortality risk to between 1-2 %. Contradictory opinions were expressed at the workshop. A specialist veterinary aneasthetist confirmed that risks increase with frequency of......

Words: 759 - Pages: 4

Premium Essay

Stop Trying to Delight Your Customers

...Stop trying to delight your customers was a very interesting article I enjoyed reading it and I especially liked the beginning of the article when the authors say “To really win their loyalty forget the bells and whistles and just solve their problem.” This statement is totally true because companies must delight their customers by exceeding their service expectations. Helping customers find the solution to a problem through the use of problem solving model strengthens the customer provider relationships. Just as each customer is unique, problems are unique and should be approached in a manner that allows you to gather information and take the appropriate course of action to solve it. An important aspect to me that companies really need to focus on is the front line. “Frontline employees are crucial for good customer interactions". The frontline is the first contact to the customers and the first contact is critical to problem solving because is all the customer wants first. Once the quick solution is implemented, root cause analysis, new or unconscious customer needs analysis, confirm the solution implemented or improve it in a short delay. Keep your customer and the front line posted on what's going on but do not harass them either. The feeling of being delighted is not linear; it evolves between situation and business as usual. The job of a service provider is to return to the customer to a satisfied state. Not listening, poor communication, and lack of respect are......

Words: 455 - Pages: 2

Premium Essay

How to Stop Excessive Shopping

...The bad habit I choose to break could be excessive shopping for no reason. There are many steps to do it. First, define the specific concrete terms. For example, if you want to stop the excessive shopping from an individual for no reason, instead of asking the individual to stop shopping, we can ask him or her to reduce the time and money: from 25 hrs and $1000 a week to 5 hrs and $200 a week. The second step should be collecting the data about the behavior of the individual. So that it will be easier by knowing the starting line, we can set up the finish line. Designing the self control program could be the third step. Reduce the shopaholic tendency by half and then reduce it further, because it will be shocking for the person’s system reducing it suddenly which may do more harm than good. Identify two other interesting things the individual like other than shopping. For example, dining or going to movies. Encourage the individual by reinforcing for dining or moving; punish them for not doing that. Thirdly, plan how to resist the temptations of shopping. If punishments are not working, have the positive talk to him and explain the rewards he may get if he performs well. Explain to him that the short term goals are chatting with friends, using internet, dining outside, or going to movies and the long term goals could be minimizing the shopping time and reducing the amount of money spent. The fourth step is making the commitment to change. In this step, display the......

Words: 355 - Pages: 2

Free Essay

How Can We Retain Customers

...How can we retain customers? For a non-profit organization, marketing is quite different from other companies since the limited marketing budget. Creating a professional internet presence such as an official website can be a great help to display the mission and beneficiaries to our customer. As far as I know, the official website of MSC is http://sisterscloset.org. However, when I searched with the keyword “my sister’s closet” in some major searching engines, it’s not easy to see our website. Actually, most of the top links is to http://www.mysisterscloset.com. When I opened the link, which I thought should be the website of MSC, I found out it was a totally different company whose name is also “My sister’s Closet”. It’s also a resale store but it has no mission to provide at-risk, low-income women any help at all. These make me very confuse and I think it will bring the same confuse to the customer who are interesting in us. What we need to do is to specific our name with any other different organizations or companies. For example, we can add a different website logo, or add the words “Monroe County” on our name, or even talk to the other companies to find out a compromise way on this. To the website itself, a better idea to make our customers to check on us is to put some pictures of our inventories. Furthermore, we need to develop a social media marketing strategy. Social media such as Face book, MySpace and Twitter will be a great help to make a connection between we......

Words: 628 - Pages: 3

Premium Essay

How to Acquire Customers

...How to Acquire Customers on the Web by Donna L. Hoffman and Thomas P. Novak Reprint r00305 M AY – JUNE 2000 Reprint Number RANJAY GULATI AND JASON GARINO The E-Business Frontier: Syndication: The Emerging Model for Business in the Internet Era E-Hubs: The New B2B Marketplaces Get the Right Mix of Bricks and Clicks NICHOLAS G. CARR On the Edge: An Interview with Akamai’s George Conrades R00303 MICHAEL BEER AND NITIN NOHRIA Cracking the Code of Change R00301 MODERATED BY DENNIS CAREY Lessons from Master Acquirers: A CEO Roundtable on Making Mergers Succeed R00312 ANDREW HARGADON AND ROBERT I. SUTTON Building an Innovation Factory R00304 WARREN BENNIS AND JAMES O’TOOLE Don’t Hire the Wrong CEO R00302 KEVIN WERBACH STEVEN KAPLAN AND MOHANBIR SAWHNEY R00311 R00306 R00313 FORETHOUGHT PAUL NUNES, DIANE WILSON, AND AJIT KAMBIL A CONVERSATION WITH ALAIN-MICHEL DIAMANT-BERGER RICHARD METTERS, MICHAEL KETZENBERG, AND GEORGE GILLEN YOUNGME MOON AND FRANCES X. FREI DAVID BOVET AND JOSEPH MARTHA REGINA FAZIO MARUCA The All-in-One Market E-Procurement at Schlumberger F 00301 F 00302 Welcome Back, Mom and Pop F00303 Exploding the Self-Service Myth Biogen Unchained Mapping the World of Customer Satisfaction F00304 F00305 F00306 WARREN D. MILLER HBR CASE STUDY The Ghost in the Family Business MONIQUE MADDY R00308 FIRST PERSON Dream Deferred: The Story of a......

Words: 4862 - Pages: 20