Pricing Drivers, Pricing Tactics and Persuasion Knowledge in Retail

Abstract

The different Pricing Drivers and related attributes shape up the pricing tactics in the retail industry. Pricing Tactics Persuasion Knowledge determines the consumer’s purchase decision based on prior interaction with persuasive actions employed by the brands to close the sales. It all depends upon the PTPK level of the consumers wherein a high PTPK consumer will judge a product differently than a low PTPK consumer. The different pricing strategies employed by the retailer and brands has a direct impact on the customers personal judgement of perceived price fairness which in turn determines the fate of the product where the persuasion is viewed either as a brand gimmick or legitimate offering.