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Lee, Social Marketing, Fifth Edition Instructor’s Resources
Chapter 11:
Price: Determining Monetary and Nonmonetary Incentives and
Disincentives
Chapter Summary
The price of a social marketing product is the cost that the target audience
associates with adopting the new behavior. Costs may be monetary or
nonmonetary in nature. Your task is to use this second tool to help ensure
that what you offer the market (bene&ts) is equal to or greater than what
they will have to give up (costs). As noted, the Product and Place tool are also
used to increase bene&ts and decrease costs (e.g., providing more
convenient locations to recycle is a Place strategy). Your objective (and
opportunity) with the Price tool is to develop and provide incentives that can
be used to provide one or more of the following six impacts. The &rst four
tactics focus on the desired behavior and the last two on the competing
one(s):
1. Increase monetary bene&ts for the desired behavior.
2. Increase nonmonetary bene&ts for the desired behavior.
3. Decrease monetary costs for the desired behavior.
4. Decrease nonmonetary costs for the desired behavior.
5. Increase monetary costs for the competing behavior.
6. Increase nonmonetary costs for the competing behavior.
Although most prices for tangible goods and services are established
by manufacturers, retailers, and service providers, several principles can
guide a social marketer faced with price-setting decisions, beginning with
establishing pricing objectives. What do you want the price to accomplish for
you? Once de&ned, you will then likely decide to establish your price based
on cost, the competition, or the perceived value that your target audience
holds.
