Pricing Beyond the 'Homo Oeconomicus': Expensive Mistakes and Profitable Opportunities in Pricing Research

Florian Bauer

INTRODUCTION

It's undoubtedly paradoxical that when German dairy farmers protested in front of bottling plants and chain stores in 2008 and demanded higher prices for producers, the majority of consumers were right behind them, even though this solidarity meant that they would ultimately have to pay more for their milk. Some dairies are nowadays even using the fact that their product is, for example, 10 cents dearer to conduct successful advertising campaigns, whilst naturally reassuring people that this money goes straight to the farmers (see figure 1).

FIGURE 1 PRICE MOTIVATION CAN BE DIVERSE – MORE DIVERSE THAN THE ASSUMPTION OF A “HOMO OECONOMICUS” WOULD SUGGEST