Marketing_Article_Review_I._ MKT-607 The Charm of Behavior-Based Pricing Grand Canyon U

Marketing_Article_Review_I._  MKT-607  The Charm of Behavior-Based Pricing  Grand Canyon University: MKT-607  Marketing Article Review: The Charm of Behavior-Based Pricing  The practice of a business using technology to track consumers™ purchase history and leverage the information when setting prices is behavior-based pricing (BBP). The Charm of Behavior-Based Pricing: When Consumers™ Taste Is Diverse and the Consideration Set Is Limited, by W. Amaldoss and C. He (2019) analyze a method that can help businesses earn more profits using BBP in a horizontally differentiated market where consumers™ tastes are diverse, and the consideration set is limited. Amaldoss and He believe that when consumer valuation of a product is low, the lower price can help expand sales to consumers because of the increased price competition. The authors use an analytical model that incorporates the notion of BBP in the spokes model, which they argue is a more appropriate framework for studying a market where consumers™ taste is diverse, and the consideration set is limited (Amaldoss and He 2013; Chen and Riordan 2007). Amaldoss and He conclude that earlier research of behavior-based pricing was limited because of the assumption that it does not work when consumers valuation of a product is high, but they argue that consumers actually buy products and services that hold lower consumer value. The amount of services and products sold in the lower valuation to consumers would offset any losses from selling at a lower price because