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The Impact of Price Ranges to the Pricing

Author

Listed:
  • Jani Toros

    (University of Primorska, Slovenia)

Abstract

This monografy analyses the price ranges as a result of the irrational behaviour of the buyers. We establish a new rule in understanding the relationship between quantity and price. In the theoretical and empirical work we demonstrate that the ranges appear to result from unforeseen responses of the customers. The demand curves show how a change in the price level does not change the level of the demand or even changes it in the opposite direction of what we would logically expect: the increase of price lead to increased level of demand and vice versa. We attribute the reasons for this phenomenon in a highly subjective knowledge of customers who often do not respond in accordance with neoclassical theory of rationality. Their behaviour is influenced by subjective factors often in conflict with rationality. Therefore we developed a framework that seeks to explain this new aspect of rationality. It is linked to the transformation of the society as well as marketing and social values. In the empirical part of this dissertation we have managed to research a phenomenon of price ranges in the survey which, including the extent of twenty category purchasing groups and a total of a hundred and forty products, provided a significant amount of information that we have treated with the method of conjoint analysis.

Suggested Citation

  • Jani Toros, 2014. "The Impact of Price Ranges to the Pricing," Faculty of Management Koper Monograph Series, University of Primorska, Faculty of Management Koper, number 978-961-266-169-4, June.
    • Handle: RePEc:mgt:fmkmon:978-961-266-169-4
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    References listed on IDEAS

    as
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