A researcher studying the effect of price promotions on consumers' expectations makes up two different histories of the store price of a hypothetical brand of laundry detergent for the past year. students in a marketing course are randomly assigned to view one or the other price history on a computer. some students see a steady price, while others see regular promotions that temporarily cut the price. then the students are asked what price they would expect to pay for the detergent.

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Business

Haylie Ortega

16 January, 22:11

A researcher studying the effect of price promotions on consumers' expectations makes up two different histories of the store price of a hypothetical brand of laundry detergent for the past year. students in a marketing course are randomly assigned to view one or the other price history on a computer. some students see a steady price, while others see regular promotions that temporarily cut the price. then the students are asked what price they would expect to pay for the detergent.

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Elaine Bond · Answer 1

Basically, the students would expect to pay the prices affixed in times of promotion. This is especially so if the promotions programs are done on a constant basis and if they result to massive interests in the products on offer.

In reality though, the students would have expected to pay the normal prices since promotions are temporary and can never and should never be used as a main selling strategy.