Perceived Value Pricing

3.   PERCEIVED VALUE PRICING

Companies using a perceived valued pricing approach will set its prices based on what consumers are willing to pay ( IE the price at which consumers feel the product is worth).

Unlike markup pricing and break-even pricing, perceived valued pricing does not consider the cost of a product or service in determining its price. Companies using this approach simply survey former customers and/or potential customers in an attempt to determine the the value buyers place on their products or services.

Categories: Marketing