Exam Prep Pricing Incentives & Disincentives Chapter 11

CHAPTER 11 Price: Determining Monetary and Nonmonetary Incentives and Disincentives

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1. List at least 2 types of options for increasing monetary incentives for the desired behavior:

a. Rebates, gift cards, allowances, cash incentives, free

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2. List at least 2 types of options for nonmonetary incentives for the desired behavior:

a. Pledges, commitments, recognition, appreciation

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3. List at least 2 types of options for decreasing monetary costs for the desired behavior:

a. Discount coupons, gift cards, trial incentives, waiving or discounting fees, segment pricing

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4. List at least 2 types of options for decreasing nonmonetary costs for desired behavior:

a. Time, effort, physical cost, psychological cost

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5. List at least 2 types of options for increasing monetary disincentives for competing behaviors:

a. Increasing taxes, increasing enforcement, imposing fines, decreasing funding

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6. List at least 2 types of options for increasing nonmonetary disincentives for competing behaviors:

a. Negative public recognition, emphasizing downsides/costs of competing behavior

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7. For the Fair Play/Hockey Games example mentioned in the chapter, describe the price tactic that was used to influence the behavior.

a. Nonmonetary Incentive or Extra point for fewer penalties

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8. For the Bike Helmets example mentioned in the chapter, describe the price tactic that was used to influence the behavior.

a. Monetary Incentive or Discount coupons

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9. For the Farmers Market Checks example mentioned in the chapter, describe the price tactic that was used to influence the behavior.

a. Monetary Incentive or Debit card, Nonmonetary Incentive or Debit card

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10. For the Teen Abstinence example mentioned in the chapter, describe the price tactic that was used to influence the behavior.

a. Nonmonetary Disincentive for the competing behavior or Showing the consequences of having sex

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11. For the Tobacco in the Philippines example mentioned in the chapter, describe the price tactic that was used to influence the behavior.

a. Monetary Incentive or Increased Savings, Monetary Disincentive or Forfeiting money if didn’t pass test

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12. For The Filthy Fifteen Properties example mentioned in the chapter, describe the price tactic that was used to influence the behavior.

a. Nonmonetary Disincentive or Posting their property on the public website

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19. Why do pledges and commitments increase the chances someone will follow through and complete the behavior?

a. Pride, self-identity, public recognition, self-fulfilling prophecy

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20. In the Research Highlight regarding the coupons for native plants, describe why you think the winning coupon (66.2% redemption) worked better?

a. We are “hard-wired” to be attracted to FREE.Gives us an emotional/psychological charge.