The marketing logic behind the price increase and price reduction of home appliance

Every holiday before the eve of the home appliance market will always be filled with a strong atmosphere of price reduction. But recently, someone pulled the banner prices.

This is not the first time someone has sent price inflation. Four or five years ago, there was a media report said air conditioner, refrigerator, washing machine and other white goods prices; at the beginning of 2008, the price of a few news white products famous home appliance brands Gao Qi have also attracted a lot of attention; in recent months, white goods to the newspapers consumer price information again. The reasons for the price increase include: the rising prices of raw materials, the increase of packaging and transportation costs, and the obvious increase of enterprise labor costs.

Due to the fierce competition in the appliance market, the last more than 10 years, home appliances to consumers is the impression that prices have been. Said that appliances have also gone up, may be difficult to believe.

However, according to the author's understanding, white electricity prices have indeed gone up, there are price departments investigation report as evidence. In 2006, the price monitoring institution the relevant departments of the 8 major home appliance production provinces and 36 large and medium-sized city, conducted a special investigation, involving color TV, refrigerator, washing machine, air conditioning, gas stove, water heater, microwave oven, 7 kinds of household appliances. Survey shows that, in addition to color TV prices continue to decline, the other 6 types of household electrical appliance market retail prices have varying degrees of rise. In 2008, the price monitoring center in Jiangsu city of Zhenjiang province for air conditioning, refrigerator, washing machine, color TV, microwave oven, water heater, lampblack machine 7 a variety of household appliances price survey found that home prices are showing a trend of differentiation of black and white pattern, refrigerator, air conditioner, washing machine and other white overall price rise, while the TV etc. black electricity prices continue to decline.

It is easy to see, black TV prices continue to decline, and it is the color TV prices for a long time drop, giving consumers a feeling: home appliances have been on the price. In 1997, to buy a 26 inch picture tube TV needs nearly 6000 yuan, in 2007, to buy a 32 inch LCD TV needs nearly 6000 yuan, and by 2010, 32 inches LCD TV only needs more than 2000 yuan.

Generally speaking, people are impressed with the larger changes, such as the price drop of color TV sets, the ups and downs of the stock market, etc., and only vague memories or even neglect of small, gradual changes. White electricity prices are such a gradual, small change process. The aforementioned 2006 and 2008 data show that the largest price increases in white products will be about 10%, which may not be a one-time rise, but after several adjustments to reach the price level.

Frequent promotions in the industry also partly mask price increases. To the author has paid attention to a washing machine, for example, the initial price of 3580 yuan, and then rose to 3680 yuan, and then the festival promotion has changed back to 3580 yuan, the end of the promotion to resume 3680 yuan. The whole is up, but prices, manufacturers are generally silent, holiday promotions will be a big fanfare, so that consumers only know promotional markdowns 100 yuan, I do not know the actual increase of 100 yuan.

A few years ago, home appliance manufacturers and stores in the "51", "eleven", "Spring Festival" and other 7 days during the long holiday promotions, many consumers are also accustomed to shopping in these hours. But with the 7 day holiday may cancel, a small holiday for 3 days, in addition to the manufacturers because of the need for competition started looking for a variety of new promotion, such as our celebration, anniversary, quarter sale, consumers gradually began to cut fatigued — — each promotion that great efforts, which in the end time is the cheapest? In addition, since it would again price promotions, the consumer can not continue to Chibidaigou?

Businesses and consumers Chibidaigou psychological warfare, is entering a new stage. Some smart manufacturers and stores found this and began to tentatively throw &ldquo from time to time; prices say "&rdquo";. Many consumers purchase the existence of "buy up, do not buy or drop" mentality, in the home appliance market, this psychological may be part of the same. However, consumers buy home appliances will not blindly chase, because consumers accustomed to the price of home appliances has always been convinced that home prices will stop rising down in the foreseeable period of time, consumers need is “ the lowest ” in a certain period of time, their Chibidaigou a household appliances (such as two months, the first half of the lowest price).

Who can give consumers an accurate low point expectation and may be better at winning the promotion?. The enterprise throws price, said going up, is to let you buy it now; there are businesses thrown a few months later due to air conditioning industry rules and the price that is to let you in recent months to buy; but some businesses still continue thinking, just mention the price, just repeat the promotional efforts the maximum, so that consumers do not know “ low ” where such loss may be potential consumers.