The general theory of behavioral pricing: Applying complexity theory to explicate heterogeneity and achieve high-predictive validity

Building behavioral-pricing models-in-contexts enriches one or more goals of science and practice: description, understanding, prediction, and influence/control. The general theory of behavioral strategy includes a set of tenets that describes alternative configurations of decision processes and obj...

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Main Author: Woodside, Arch
Format: Journal Article
Published: Elsevier 2015
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/30997
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author Woodside, Arch
author_facet Woodside, Arch
author_sort Woodside, Arch
building Curtin Institutional Repository
collection Online Access
description Building behavioral-pricing models-in-contexts enriches one or more goals of science and practice: description, understanding, prediction, and influence/control. The general theory of behavioral strategy includes a set of tenets that describes alternative configurations of decision processes and objectives, contextual features, and beliefs/assessments associating with different outcomes involving specific price-points. This article explicates these tenets and discusses empirical studies which support the general theory. The empirical studies include the use of alternative data collection and analytical tools including true field experiments, think aloud methods,long interviews, ethnographic decision-tree-modeling, and building and testing algorithms (e.g., fuzzy-set qualitative comparative analysis). The general theory of behavioral pricing involves the blending of cognitive science, complexity theory, economics, marketing, psychology, and implemented practices. Consequently, behavioural pricing theory is distinct from context-free microeconomics, market-driven, and competitor-only price-setting. Capturing and reporting contextually-driven alternative routines to price setting by a compelling set of tenets represent what is particularly new and valuable about the general theory. The general theory serves as a usefulfoundation for advances in pricing theory and improving pricing practice.
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spelling curtin-20.500.11937-309972019-04-11T01:34:02Z The general theory of behavioral pricing: Applying complexity theory to explicate heterogeneity and achieve high-predictive validity Woodside, Arch Pricing Configuration Empiricism Behavioral Theory Building behavioral-pricing models-in-contexts enriches one or more goals of science and practice: description, understanding, prediction, and influence/control. The general theory of behavioral strategy includes a set of tenets that describes alternative configurations of decision processes and objectives, contextual features, and beliefs/assessments associating with different outcomes involving specific price-points. This article explicates these tenets and discusses empirical studies which support the general theory. The empirical studies include the use of alternative data collection and analytical tools including true field experiments, think aloud methods,long interviews, ethnographic decision-tree-modeling, and building and testing algorithms (e.g., fuzzy-set qualitative comparative analysis). The general theory of behavioral pricing involves the blending of cognitive science, complexity theory, economics, marketing, psychology, and implemented practices. Consequently, behavioural pricing theory is distinct from context-free microeconomics, market-driven, and competitor-only price-setting. Capturing and reporting contextually-driven alternative routines to price setting by a compelling set of tenets represent what is particularly new and valuable about the general theory. The general theory serves as a usefulfoundation for advances in pricing theory and improving pricing practice. 2015 Journal Article http://hdl.handle.net/20.500.11937/30997 10.1016/j.indmarman.2015.02.004 Elsevier fulltext
spellingShingle Pricing
Configuration
Empiricism
Behavioral
Theory
Woodside, Arch
The general theory of behavioral pricing: Applying complexity theory to explicate heterogeneity and achieve high-predictive validity
title The general theory of behavioral pricing: Applying complexity theory to explicate heterogeneity and achieve high-predictive validity
title_full The general theory of behavioral pricing: Applying complexity theory to explicate heterogeneity and achieve high-predictive validity
title_fullStr The general theory of behavioral pricing: Applying complexity theory to explicate heterogeneity and achieve high-predictive validity
title_full_unstemmed The general theory of behavioral pricing: Applying complexity theory to explicate heterogeneity and achieve high-predictive validity
title_short The general theory of behavioral pricing: Applying complexity theory to explicate heterogeneity and achieve high-predictive validity
title_sort general theory of behavioral pricing: applying complexity theory to explicate heterogeneity and achieve high-predictive validity
topic Pricing
Configuration
Empiricism
Behavioral
Theory
url http://hdl.handle.net/20.500.11937/30997