Customers that are well versed with price vocabularies can derive economic benefits.
A price vocabulary is a distinct and consistent set of prices that make use of price endings and can also involve symbols such as glyphs, numerical codes and colour coded sale tags. The author states that retailers use price vocabularies primarily for operational purposes and because they ultimately can deliver significant marketing benefits.
When price vocabulary is consistently used, it can set brands apart from their competitors. However, most customers are unaware of them, but those that are aware tend to be actively engaged with the brand.
With a price vocabulary’s ability to drive economic benefits for consumers, it can effectively function as a loyalty reward program. Implementing a price vocabulary is economically efficient and it brings in structure and consistency in the pricing process.
[4 minute read]