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Psychophysics of Prices

129 citations0/0 files storedJournal of Marketing Research

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Consumer Market Behavior and Pricing Consumer Behavior and Marketing Influence Consumer Behavior in Brand Consumption and Identification

Abstract

This article develops and tests a “fair price” theory which is essentially contradictory to Weber's Law. As price levels rise, a constant price differential between brands becomes more important, rather than less important, in determining market share. Many testable hypotheses can be derived from this theoretical formulation.

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