Perceived value pricing

Perceived price can be defined as customer’s subjective perception of what is given up or sacrificed to acquire the product. In Perceived-Value Pricing system, a company charge a price of a product by considering and based on what product image a customer thinking in his mind, also customer’s perceived value of the attributes of the product offering and how much he is willing to pay for it.

In economic terms, ‘value’ has traditionally been equated with utility or desirability. Perceived value pricing indicates the importance of giving benefits and functionalities to the consumer and at the same time need to price it effectively so that the firm can take appropriate value. Perceived value pricing is effective in pricing of premium goods and services with a large intangible component.

The psychological values refer to ways that a product or service creates satisfaction and delight for a customer through psychological parameters and have to be assessed for a given marketing offering and monetized to enable obtain the differentiation value. One of the popular psychological values is perceived quality.
Perceived value pricing