Just like quality, price is a matter of perception. If anyone asks ÿou a question "Ïs this product/service good value?" It's difficult to answer it right away. Also, my answer may be different from yours.
The reason being that I have a certain value I attach to a product, based on my situation, and my view/attitude towards a product (I am loosely using the term product- could be a service, something you pay for). When hungry, a plate of food has immense value for anyone, but in other situations, each person may determine the value for himself, and be willing to pay (or not pay) a certain price as per his evaluation. Rational as well as intangible features influence this, as does peer influence or other social factors. Apart from affordability, of course.
Determining what is the perception regarding price among a set of consumers is a challenge for marketers. If done right, it leads to a profitable business; if not, may mean you have to tweak the price, or the product/itself to make it desirable or of adequate value.
1 comment:
The idea for pay before you eat I think has resonated in this context.
Getting that check/bill after you are done eating might make you think - that is lot of money - who ate all this?
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