iN RESPONSE TO ANDREWS BLOG: PRICING

In response to reasonable price verses high prices.  I would say for the companies benefit selling an item at the highest price will bring in the most money.  Example the XBOX 360 when it was a brand new gaming system people were on waiting lists to receive the item.  Why would the company want to lower a price when there are completely sold out?  I would recommend a price decrease when the said company produces a upgraded item such as Apple does. The company wants to receive as much revenue as possible.  The consumer of course wants to get a better deal on items and thus thinks it would be better to start at a reasonable price.  What if the company markets the item for far more then intended and then marks it down shortly after to their revenue price?  This would make customers believe they are getting the deal. Don't you think?

Just a thought.

As I'm sitting here studying for a psychology exam, I notice one of the questions asks about John Watson.  John Watson is the founder of behavioral psychology.  Also noted he was the first to produce infomercials and use emotion to advertise.  This hits me as I am reading on.  Advertisement has a long history and coincidentally has a lot to do with psychology, my intended major. How can you incorporate your major into marketing?  Is there a specific assignment or paper that you have done that makes you think?