Reflect on the legal and ethical implications of certain applications of the psychology of pricing

COURSE OVERVIEW The prices of a firm’s goods and services have a direct, visceral impact on customer demand and, in turn, revenue. Importantly, this relationship is not simply a function of the economic magnitude of a price, but also of how, when, where, and why prices are communicated. In other words, price is a complex, multifaceted tool in the mind of the consumer. This explains why firms struggle with pricing decisions despite their importance. In this mini-course price is covered from the perspective of the individual consumer, who exhibits biased processing of and emotional reactions to price communications. The aim of this course is to augment students’ understanding of the strictly economic, rational influence of price magnitude with the myriad psychological influences of price communications as a whole. In this course you will come to: • learn about important psychological theories that explain cognitive and affective reactions to price communications • understand the methodology used to study the psychology of pricing • understand how price information can be communicated to maximize value for both consumers and marketers • consider how the psychology of pricing influences emerging pricing strategies • reflect on the legal and ethical implications of certain applications of the psychology of pricing