ABSTRACT
Expectations drive buyers’ behavior and nowhere more so than their expectations around pricing. If customers come to expect that some change in their purchasing behavior will enable them to get the same product or service at an even better price, then a regular price that they perceived as a good value becomes no longer acceptable. To avoid creating customer expectations that lead to downward pressures on price, sellers need to anticipate the impact that their pricing policies, and particularly their discounts, create for future sales. In this chapter, we describe how a company can use policies to influence price expectations in a positive way.
