Sunday, June 14, 2015
Psychological price - price that should be ok for a person
For any object, you have a price tag in your mind. That is
called psychological price. Well, this PP is shaped your surrounding
environment and experience with the world. However, for any object if you get
it within the PP, that’s great. For example, for a bottle of water market price
is 1 USD. Now you are in a dessert and you feel very thirsty. You see a shop
and they don’t have any price tag attached to the bottle of water. They simply
ask 10 USD. Now at that situation PP for that water by you is 20 USD. So you
don’t argue and straightforward pay that price. Later you might find that they
ask different price for the same bottle water to different persons and if you
could haggle, you might get it lower value. Well in materialistic sense, you
might be in the loss but as you consider PP value you are ok. So in life
whenever you are going to decide about the price of a thing that you are going
pay if it Is within your PP you could go ahead.
But if you think you could try to get it lower price, then
that’s ok as well as you have limited supply of money Usually getting quotation
from three vendors is sufficient enough. Now a days you could also do internet
search to get a guide price.
On the other side of the story, for the vendor may sell the
same product at different price to different persons. In modern pricing
strategy it is called price targeting or price discrimination strategy. However,it
is on question according to ethics.
In an Islamic website, the following is mentioned: But if the price is greatly increased, and the purchaser does
not know the usual price – such as if he sells something that is usually worth
sixty for ninety, as mentioned in the question – then this is not permissible,
and is a kind of cheating and deception.
UK govt has specific rule on price display by the traders as
could be seen here:
it is the sign of competitive economy when the same product
is sold at different prices as the following link states:
Great ethical and legal thoughts on pricing strategy:
Labels: price
# posted by Abu Rashid @ 8:37 AM 
