Beyond the many faces of Price - Case Study Example

Individual Assignment: Paper Review Author Affiliation Date Table of Contents 1.Abstract 3 2.Background of the papers 3 3.Research issues identification of problems in the articles 4 4.Identify of marketing theories in the articles 4 5.Major findings 5 6.Implications for marketing managers as outlined in the articles 6 7.Comments on the key issues of the articles 7 8.Recommendations and suggestion 7 9.Conclusion 8 References 8 1. Abstract In this report, five articles have been selected for the reviewing purpose. Pricing has been chosen as a subject of this report. All the articles are taken from marketing and marketing management journals. A review report will help in clearing the understandings of the research articles. Moreover, such a report will also explain how different articles are different from each other and what kind of research methodologies have been chosen by different papers. The review report will explain background, research issues, identifications of marketing strategies, various major findings, implications of marketing manager and recommendations for improvement. In this way different articles will be compared and analyzed in detail. 2. Background of the papers Pricing and pricing strategies are the subject of this review paper. All the studies explain different types and kinds of pricing. The study by Kanagal (2002) is describing the concept of perceived value. According to this paper perceived pricing strategy is an important pricing strategy, the whole paper describes the nature, type and components of perceived pricing. The main components of that Study are introduction of the Study, research question, and conceptual framework, examine methods, management issues, empirical study and implication of the subject. The other study of Stremersch & Tellis (2002) and other study by Mazumdar & Sinha (2005) both have been taken from the marketing journal that is the reason both studies are following the same procedure of research. The study by Stremerch & Tellis (2002) explains the strategic bundling of product and pricing and the other study by Mazumdar and Sinha (2005) describes the reference price in detail. The way of [resenting the research is the same as both researches have clear introduction, literature review by explaining each element of the research in detail, conceptual framework, methodological challenges, discussion and conclusion. The other study by J.Tellis (1986) explains the integration of all pricing strategies. This study did not use different headings in the research even it has explained all the element and different pricing strategies in detail in each section and at the end the researcher integrates all the pricing strategies and explained his findings. The last selected study of Zeinthaml (1998) explains the consumer perception about the price, quality and value. Unlike the Kanagal study, which discussed only perceived value and ignored the aspects of the value. The study of Zeinthaml (1998) is a detailed investigation about the consumer perception bout the price. The nature of the research is exploratory to clear the relationship of the three components price, quality and value. The components of the paper are introduction of the Study, conceptual framework, literature, research implications, and methodology of the research and at the end the author has explained the implication of the research and its management implications. 3. Research issues identification of problems in the articles In the study of Kanagal (2010) which is an empirical research in which many research questions have been discussed. It makes the discussion complex and difficult to understand. Moreover, different case studies have also been used for discussing the arguments, but at the same time conclusion is also not clear and specific. In the study of Stremersch & Tellis (2002) introduction is very clear, but the literature review covers many components, but it is not explaining the relationship of various variables of the research question. Similarly, the research results are also not clear and not discussed in detail. The other study of Mazumdar & Sinha (2005), is one of the best studies in all the five Studies because it elaborates in detail the conceptual framework and other all elements of the research, but the paper does not explain the scope of the future research related to reference pricing strategy. The other study by J.Tellis ((1986) is an explanatory research in which the detailed analysis has been done on the research question. The research question itself required a detailed discussion about the question on which the faces of price. The one of the big issues of this research is it ignored the real essence of the research methodology even at the end the findings are not clearly defined. The last selected study by Zeinthaml (1998) is also a complex study, but it shows the clear understandings of research. Moreover, the clear discussion and conclusion is also missing from the research, but at the same time it explains clearly the implications of research topic on the management of the organization. Moreover, another issue with this research is it also ignores the suggestions and recommendations of future researchers. 4. Identify of marketing theories in the articles All the selected studies have used different marketing theories for proving their arguments and drawing the conclusions. The study by Kanagal (2010) has used the theory of perceived value pricing construct to understand which the maximum price that a customer can willingly pay to buy a product and how value is created by the companies to attract more customer. In this theory the researcher also discussed the differential value to see what the psychological impacts of the product is and how to affect the buying decision if company succeed in giving value through its attractive features. Furthermore, the theory of perceived value also helps in determining the price of the product that is the reason it is one of the significant theories of marketing. In the other study by Stremersch & Tellis (2002) there are various marketing theories have been used at one time to relate all the theories with each contrasting with the strong arguments. The theories of bundling, price bundling, product bundling, pure bundling, mixed bundling. Moreover, through these marketing theories of bundling, there are 12 propositions have been formulated to support the arguments of the particular bundling theories. On the other hand, in the other study by Mazumdar & Sinha (2005), only theory related to reference price has been discussed. Different scholars and researchers explained the context of reference pricing theory in different ways for different purpose a Study accumulates all the theories of reference pricing of marketing. In the other study by Zeinthaml(1998), the theories of consumer perception have been used that elaborates the concept of price, quality and value from the customer’s perspective and developing consumer preposition to support the evidences. Moreover the theories of quality and price are also used to identify the importance of effective pricing strategy and quality attributes of the specific product. The theory of perceived quality is based on different attributes of the product and price is one of that attribute. The last study by J.Tellis (1986), is specifically based on only price. So, it elaborates the theory of pricing strategy in which it states different pricing strategies like differential pricing strategies, competitive pricing strategy and product line pricing strategy. Moreover, it also explains different subtypes of these strategies to clearly define and compare different pricing strategies. The theory of pricing strategy is different like price skimming, price penetration, psychological pricing, but this Study gives the general idea of each type or subtype of pricing theory to differentiate to each type with each other. 5. Major findings The Study of Kanagal (2010) is based on the concept of the conceptualization of perceived value pricing. Perceived value pricing is one of the important price setting strategy the Study also stated that and also explains that the perceived value pricing is very effective to estimate the real price of the product. It is the strategy is also used as the alternate strategy. The perceived pricing strategy can be used in the place of skim and penetration pricing strategy in price setting method. It estimates the price of the product accurately than the other strategies. The Study of Stremersch & Tellis (2002) bundling of price and product reflect the significant results and findings like the importance of bundling and its benefits in the marketing and promotion of the product. The Bundling of price is a popular strategy of modern market and organizations. The Study also integrates all the perspectives of bundling and gives a deeper and a clear view on the price and product bundling. The bundling of price and product is optimal in various contexts that can be incorporated into the marketing plan to promote the product effectively. The other Study of Mazumdar & Sinha (2005) reference pricing, gives the insight on the numerous contexts of the reference pricing strategy. According to the Study reference price has multiple conceptualization and this conceptualization helps in determining the significant features of the reference pricing like its formation phase, retrieval process of reference pricing, contextual moderators of the reference pricing, effects of the reference pricing strategy and store, product category operators and consumer characteristics. The reference price research is used to do detailed research of the consumer choice and preferences, the study also concludes that the different contexts of the reference price will increase the understanding of the organization to understand its customer. Moreover, the Study by J.Tellis (1986) explains the different pricing strategies. Some of the pricing strategies are simple and some are complex, but all are useful. Additionally, all the comparison of different pricing strategies classifies each of the strategies differently. All the strategies are new and other, those strategies are obsoleted are discarded by the researcher of the Study like companies were using skimming pricing strategy, but now it has been replaced by the competitive pricing strategy because it covers overall analysis of the competitor. Moreover, the Study by Zeinthaml (1998) explains the implication of price, quality and value of the consumer perception. Moreover, it also demonstrates how the perception about the quality and price reinforce and demotivate the purchasing decision of the consumer. All the findings are based on the effects of the price and quality on the consumer perception. 6. Implications for marketing managers as outlined in the articles In the study of Kanagal (2010), it has been explained that the perceived value pricing strategy is very important and effective for the organizations and for the mangers in setting the price of the product. Money is the important factor in the eye of the customer the Study explains that the manger can easily examine the importance of each penny that the customer will pay to buy the product. The managers can exploit the perceived value pricing in many ways. The other Study of Stremerch & Telllis (2002) which explains price and product bundling also narrate the implications of the bundling on the marketing managers and marketing management of the organization. The bundling is the controversial issue many of the markets a mangers feel fear of price and product bundling. Moreover it has many hazards if the manager and the organization fail in managing the bundling effectively and wisely. So there are two kinds of price and product bundling strategies that can be used by the manager to handle bundling effectively that are closely mixed bundling and pure bundling. Thus, managerial expertise is required to manage price and product bundling effectively. Moreover, the Study that covers the concept of reference price research of Mazumdar & Sinha (2005) is very useful for the manger and the organizations. The reference price can be used by the consumer and also by the manger to the doing the critical analysis about the product price. The consumer can use to compare the price of different product and managers can use it to compare the product price of its competitor’s product. The manager can achieve competitive advantage by using the reference pricing research, analysis because it covers various phases and tells different preferences of the consumer choices. Furthermore, another Study covers the different pricing strategies explained by J. Tellis (1986) the principles of the different pricing strategies can help the manger to understand the different pricing strategies and their comparable methods. Moreover, different pricing strategies will also explain the manger the methods to understand how different and effective pricing strategy can be adopted. It also demonstrates the relationship of different pricing strategy and their practical applications in the market. Moreover, it also enlightens the manager about the logic and understandings of the consumer about the product. Thus, the Study on different face of price has many implications for the manger. Similarly, the other Study of Zeinthaml (1986) is also very useful for the managers of the today’s organization, where the competition is very intense so such a Study on the consumer perception about the price, quality and value is very important. A model of the consumer perception helps the consumer to consider the significant role of consumer behavior and perception about the product and price. If a manger understands the perceived value it will benefit the organization in many ways. 7. Comments on the key issues of the articles The Study[Nag10] has covered the significant issue of the perceived value pricing. The perceived value pricing is also a price setting procedure that is very useful for the organization to estimate the total estimation of value and price. The other Study[Ger86] is discussing many faces of the price in the context of different pricing strategies. Different pricing strategies are important to understand because only pricing strategy helps the organizations to design effective and appropriate price of the product. Moreover, the issue of quality and price in the consumer perception has also been raised in the Study[Val98] which is the pivotal determinant of consumer buying decision and reflects the shopping habits of the targeted group. The perception of the consumer elaborates all the psychological traits of the consumer. Furthermore, the issue of reference price which has been discussed in the Study[Tri05] which sets the standards against the purchase price and by using this standard the purchase price is judged and estimated. The reference price has also many effects on the consumer purchase behavior. Moreover the Study[Ste02] has also selected the different issue of product and price bundling that is useful to understand how the marketers bundling various products and prices for increasing their volume of sales. The bundling of price and product is a good strategy to attract the consumers and increase the profits and sales. It is also significant in grabbing a large market share and gaining competitive advantage in the competitive market. 8. Recommendations and suggestion All the five selected studies have many good points, but at the same time they have some limitations that we have discussed in the problem identification section of this review report. Thus, all the Study need improvement that is why there are some recommendations for improvements that have been recommended by the author at the end. The recommendations are: The Study that is about the strategic bundling of product and prices [Ste02] explains the strategic bundling in a proper way, but it ignores the other side of the argument that is limitation of product and price bundling. Even in the conclusion the Study itself concluded that bundling is a controversial topic for managers, but author suggested that there is a need of explaining the reason behind its controversial nature. The Study[Ger86] about the different faces of price is very simple. According to the author, research is not complete, there are many new research components are needed to add because in such a way a research seems very simple and incomplete. Moreover, Study should also explain the implications of different faces of pricing strategy on the sales of the organization. As, paper covers only consumers perspective. The Study of conceptualization of perceived value[Nag10] has discussed various research question. So, it creates different complexities in understanding the focal point of the Study. Therefore, at the end the author suggested that there is a need to clearly address the issue of conceptualization of perceived value pricing and its effects in the future researches. Moreover, the clear conclusion and findings should be incorporated into the Study[Val98] otherwise the conclusion looks vague and incomplete. Otherwise research would look vague. Likewise, in the Study of Reference pricing[Tri05] Author suggested that there is a need to add the comparison of reference pricing with the other important pricing strategies to clearly state the importance of Reference pricing for the consumer and for the organization in the future researches. 9. Conclusion To sum up, it can be concluded that all the articles explains the price in different ways with different perspectives. Furthermore, all the articles have been written in well-structured and organized form and all described their points with valid arguments. The holistic approach that all the five articles have adopted to explain their arguments is the detail research on the pricing and its factors. All the five papers have selected a topic pricing of marketing management and have elaborated with different perspectives. All the five selected studies have some weakness and strengths. In addition, all adopted different and distinct approach to prove their point, but the main focus of all the articles is on pricing. References Nag10: , (Kanagal, 2010), Ger86: , (J. Tellis, 1986), Val98: , (Zeinthaml, 1998), Tri05: , (Mazumdar & Sinha, 2005), Ste02: , (Stremersch & Tellis, 2002), Ste02: , (Stremersch & Tellis, 2002), Read More