Marketing Research Essay Example | Topics and Well Written Essays - 500 words - 2

Marketing Research - Essay ExampleConsumer psychology being used as a factor to charge a steep price is a outline known as premium pricing.It might be assumed that this kind of strategy would be used to skim the market and take as a great deal profits as possible and at long last volition have to be abandoned. This hypothesis is, however, incorrect to assume. As Smith (1997) alludes, premium pricing strategy might not simply aim to skim the market rather to maintain a high priced brand value without straining the consumer to an extent leveled with the skimming strategy. If the company prices its wines at a price much higher than the actual be, but keeps it within affordable limits of the targeted market segment, the output is likely to establish a significant brand value. Brand value, however, is dependant on the kind of advertisement that has been done and the branding cost to establish the product while pricing itself is an independent variable as the actual costs of the pr oduct are not a deciding factor. Brand value in the example research were careful by mere exhibition of cost to the sampling histrions. The assumption of a better reputation and judgment based on the cost confirms the premium pricing method for the product to be an effective proficiency that utilized the expectation of the participants from a high priced wine to be better in taste as per Emmerichs (2005) research. Other variables, as Emmerich (2005) states, that could affect the results of such a strategy include competitive forces competitors will have the advantage to sell their products at lower prices and continuously challenge the price of the product. Researches could have mensural comparison with competitive brands as an additional variable.An experiment to test this will require each participant to test and sample the wine qualitatively only knowing the tagged prices and not the actual prices. The habituated example employed a simple random sample of 20 participants, in a