Pricing and the Psychology of ConsumptionAsk any executive how pricing policies influence the demand for a product or service, and you’ll get a confident, well-reasoned reply。Ask that same executive how pricing policies affect consumption—the extent to which customers use products or services that they’ve (19) for—and you’ll get a muted response at best. It is found that managers rarely, if ever, think about consumption when they (20) prices—and that be an (21) oversight.For many executives, the idea that they should (22) consumers’ attention to the price that was paid for a product or service is counterintuitive. Companies have long (23) to mask the costs of their goods and services in order to boost sales. And rightly (24) —if a company fails to (25) theinitial sale, it won’t have to worry about consumption. To promote sales, health club managers encouragemembers to get the payment out of the (26) early；HMOs encourage automatic payroll deductions；and cruise lines bundle small, specific costs into a single, all-inclusive (27) .However, executives may be discouraging consumption when they (28) those pricing practices. People are more (29) to consume a product when they are (30) of its cost—when they feel’out of pocket’. But (31) pricing practices such as advance sales, season tickets, and price bundling all serve to mask howmuch a buyer has (32) on a given product, decreasing the likelihood that the buyer will actually use it. And a customer who doesn’t use a product is unlikely to buy that product again. Executives who (33) those pricing tactics without considering their impact on consumption may be trading off long-term customer retention for shorf-term increases in sales. 24（）

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