The intensity with which consumers respond
to losses and gains is different, that is effects are
asymmetric. It seems that the loss response is
more intense. In other words, when facing a loss
or a gain of the same quantity, a reduced
probability of choice as a consequence of a loss is
greater than a gain-induced increased probability.
The importance of this phenomenon must be
considered explicitly in strategy and managerial
performances. Activities that increase product
value, such as gifts or the opportunity to take part
in games or raffl es, therefore need to be
developed.
Since consumers are influenced by retailers ’
actions at the purchase outlet, it would be
advisable to design and to develop a series of
stimuli that help to increase the reference price.
In this way, when the individual compares
observed price and reference price, he is less
likely to perceive a loss. Thus, for example, by
increasing product advantage or quality, the
consumers would perceive it as a better product
The intensity with which consumers respondto losses and gains is different, that is effects areasymmetric. It seems that the loss response ismore intense. In other words, when facing a lossor a gain of the same quantity, a reducedprobability of choice as a consequence of a loss isgreater than a gain-induced increased probability.The importance of this phenomenon must beconsidered explicitly in strategy and managerialperformances. Activities that increase productvalue, such as gifts or the opportunity to take partin games or raffl es, therefore need to bedeveloped.Since consumers are influenced by retailers ’actions at the purchase outlet, it would beadvisable to design and to develop a series ofstimuli that help to increase the reference price.In this way, when the individual comparesobserved price and reference price, he is lesslikely to perceive a loss. Thus, for example, byincreasing product advantage or quality, theconsumers would perceive it as a better product
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