Consider your last large purchase e.g., an automobile, a computer etc.:

a. Describe how the product was priced (e.g., what was the list price, was there a discount, were there any specific payment terms, etc.). How much did you pay for it? (this is your total economic value)

b. Now using the economic model discussed in class, break the total economic value (the price you paid) into a reference value, positive and negative differentiation value (add brief descriptions)

c. Discuss how the marketer could have increased your willingness to pay a higher price? (e.g., what could they have done to the same product to make it appeal to you better)