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When Buyers also sell - Implications of Pricing Policies for Customer Satisfaction
Journal
Psychology and Marketing
ISSN
0742-6046
Type
journal article
Date Issued
2002-04-01
Author(s)
Abstract
In certain purchase situations, such as when a new car is purchased and an old vehicle is traded in, individuals simultaneously play the role of buyers and sellers. It is interesting to observe that, when evaluating the purchase and selling prices of the new and old products respectively, such consumers often fail to behave rationally. For example, a discount on the price of the new commodity and an equivalent markup on the old product will be weighted differently. This empirical phenomenon can be analyzed with the aid of the prospect theory - an approach based on the descriptive decision theory. This theory facilitates the elaboration of decision-making rules for determining the optimum purchase or selling price from the supplier's point of view. An analytical causal study conveys an idea of the significance of this aspect of pricing policy for consumer satisfaction with the purchase act. Specifically, the study examines how the attractiveness of the offer impacts on and combines with satisfaction with deal, customer service, and condition of the vehicle to determine satisfaction with the vehicle purchase.
Language
English
HSG Classification
not classified
Refereed
No
Publisher
Wiley Blackwell
Publisher place
Hoboken, NJ
Volume
19
Number
4
Start page
329
End page
355
Pages
27
Subject(s)
Division(s)
Eprints ID
2901