PRICING FOOD RANGES THE SAME BOOSTS SALES SAY AMERICAN EXPERTS
July 1st, 2006
BY MONICA DOBIE
FOOD manufacturers and retailers may sell more if they price ranges of similar products the same, American researchers show. A Northwestern University study in the US Journal of Consumer Research compared parity pricing and differential pricing, studying people ordering restaurant desserts. They found that parity pricing increased the likelihood that a person ordered a dessert whereas contrasting prices hindered decision-making by making cost a crucial factor and introducing the idea of splurging or saving. Hard-pressed customers were then more ...
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