Consumer-Driven Class Pricing

Zuhui Xiao

doi:10.1287/mksc.2023.0133

March 12, 2026Marketing Science

Consumer-Driven Class Pricing

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Key Points

The aim is to explore how consumer loss aversion influences class pricing strategies across differentiated products.
Reviewed literature on consumer behavior and pricing strategies.
Analyzed the impact of loss aversion on purchasing decisions.
Proposed theoretical framework for class pricing based on consumer psychology.
Identified loss aversion as a key factor in consumer reactions to pricing.
Demonstrated that fewer price points can lead to reduced consumer anxiety.
Proposed that class pricing can optimize consumer satisfaction and business profits.

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Implication

The paper proposes a rationale for class pricing using consumer loss aversion, suggesting implications for pricing strategies.

Abstract

This paper proposes a consumer loss aversion-based rationale for class pricing, which is the practice of assigning only a few price points to many differentiated products.

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Cite This Study

Zuhui Xiao (2026) studied this question.

synapsesocial.com/papers/69b4fc6ab39f7826a300d3f4 https://doi.org/10.1287/mksc.2023.0133

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Consumer-Driven Class Pricing

Key Points

Ask about this paper

Implication

Abstract

Discussion

Cite This Study

Consumer-Driven Class Pricing

Key Points

Ask about this paper

Implication

Abstract

Discussion

Cite This Study

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