Inquiry Research Fall 2015: Terms and Definitions - Chapter 2

Terms and Definitions of Harford Chapter 2

Term	Price Sensitive & Insensitive	Unique Target Strategy	Group Target Strategy	Self-incrimination Strategy	Leaks
Definition	Price Sensitive-being aware of prices and want to get the best value for their money and their needs. Price Insensitive-being in a state of not caring about the price that is being paid for something	Evaluate each customer as an individual and charge based on amount willing to pay	Evaluate how much groups are willing to pay based on things such as expected employment status based on age	Getting customers to give themselves away as not caring about the price	When the system is cheated by finding a way around paying the price that a retailer is charging
Example from Chapter	Price sensitive people who shop for items at supermarkets only when they are on sale or there is a coupon for them. Price insensitive people who just buy whatever coffee they see or want, regardless of prices.	Car salesman, realtors, discount cards	Charging child, adult, and elderly admission fees, the elderly and child prices are lower because they are less likely to be employed	Charging a lot for popcorn at movies because people do not want to appear stingy on a date or at a social gathering, so they will pay more for the product	Bringing your own popcorn from home to the movies, rather than paying the outrageous price there.
Your Own Example?	Price sensitive, I compare unit prices of various brands of products to find the cheapest product and size of product by unit price. Price insensitive, when I really need something, but cannot drive to the store, so I just go buy whatever they have at Macs, regardless of price	Going to the market the price changes based on how you are dressed, where you are from, whether or not you make confirmation/seem to be in a rush.	I would get into museums for free in France because I was a student, who are not expected to be making much (if any) money.	The bookstore prices are expensive at IC because everyone wants to have some sort of clothing that represents their school, but don't want to be the ones only with a cheap t-shirt, so they are willing to pay more, especially when shopping in groups.	When I go ice skating I bring my own skates rather than pay to rent the rink skates.