Application of Thurstonian scaling to determine optimal prices for new products
- Lehrstuhl für Marketing
Prices are mostly evaluated along a subjective internal pricing continuum. How does a new product find its place on the continuum?What are the psychological mechanisms of implict and explicit price evaluations? Thurstonian scaling models (particularly Thurstone's case V model) provide a fundamental logic to investigate these implicit "placement decisions" and yield a set of parameters which helfp tp plan and execute a pricing decision better.
Would be helpful (though not required) to have a resonable background in mathematics (and develop a genuine interest in scaling procedures). The content of the research, however, is non-numerical ....
Keywords: pricing decisions; Thurstonian scaling; relative price; psychological impression formation; interval scale