Perceived Value Pricing
What is Perceived Value Pricing?
Perceived value pricing is a pricing strategy that involves setting prices based on the perceived value of a product or service to the customer, rather than on the cost of producing the product or delivering the service.
In perceived value pricing, the seller seeks to understand the value that the product or service provides to the customer, and sets the price based on that value. This may involve considering factors such as the customer's needs, preferences, and budget, as well as the value of similar products or services offered by competitors.
Perceived value pricing can be an effective strategy when the value of a product or service is subjective or difficult to quantify, or when the product or service is unique or provides significant value to the customer. It can also be useful in situations where the cost of producing or delivering the product or service is relatively low, as it allows the seller to capture a greater share of the value being provided.