http://blog.sentrana.com/2009/11/16/a-beer-on-the-beach-and-other-mysteries-of-fair-pricing/ Turning complexity into competitive advantage Wed, 20 Jan 2010 23:15:41 -0500 http://wordpress.org/?v=2.9.1 hourly 1 http://blog.sentrana.com/2009/11/16/a-beer-on-the-beach-and-other-mysteries-of-fair-pricing/comment-page-1/#comment-140 Jim Davis Mon, 04 Jan 2010 12:21:24 +0000 http://blog.sentrana.com/?p=430#comment-140 Good article highlighting critical importance of consumer reference price determination for pricing optimization. In the beverage industry, the "purchase occasion" is basically divided into immediate or future consumption. For example, in your example I may be persuaded to purchase 1 or 2 beers to drink at the time (on the beach) at the hotel price; however, if I was planning on having a party later to server multiple people, my reference price would probably be the lower store price... Good article highlighting critical importance of consumer reference price determination for pricing optimization.
In the beverage industry, the “purchase occasion” is basically divided into immediate or future consumption. For example, in your example I may be persuaded to purchase 1 or 2 beers to drink at the time (on the beach) at the hotel price; however, if I was planning on having a party later to server multiple people, my reference price would probably be the lower store price…

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