Case study of commodity price preference reversal behavior

Abstract

Taking a commercial vehicle as the study example, the preference price of reversal threshold, the preference reversal threshold as well as the mean value and standard deviation of the preference reversal Weber number were measured through question-naire survey. The price preference reversal phenomenon was analyzed during the rising and falling process of this commercial vehicle's price. The asymmetry of price preference reversal was also studied. It is found that the adjustment of product price should be controlled within the preference reversal threshold. Differences are made between price rising and falling during the process of price adjustment. The adjustment strategy is taken into careful consideration.

Keywords

• price preference
• preference theory
• preference reversal
• threshold