Research Insight 7.2

Throughout the textbook reference is made to seminal academic papers (as part of the Research Insights features) that can assist you in the further development of your understanding of a particular concept or theory that has been introduced. Organized by chapter, this resource provides links to these seminal papers.

Please note that your institution will require a subscription to the relevant journal for you to access the full text of the articles. If you are unsure how to do this, please contact your university librarian. Often professional bodies, such as the Chartered Institute of Marketing, also offer access to journals via their library services. Alternatively, you can purchase the articles directly from the source website.

 

Source: Gourville, J. and Soman, D. (2002), ‘Pricing and the psychology of consumption’, Harvard Business Review, September, 90–6.

Insight: This is a useful article summarizing how marketing managers should consider not only the price at which customers are likely to purchase an offering but how the way that price is set also affects consumption. This article suggests that marketers might counter-intuitively want to draw customers’ attention to the price paid so that they can achieve greater value in using the offering and generate a longer-term impact on customer retention. The article has strong implications for organizations selling subscriptions and memberships.

URL: http://hbr.org/2002/09/pricing-and-the-psychology-of-consumption/ar/1

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