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$6.00 An increasing number of companies are basing their prices on the customer's perceived value

Found in Education: General-Education
Chapter 1, # 1
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volcanblack
 
 
Q:

(TCO D) An increasing number of companies are basing their prices on the customer's perceived value of the product or service. Explain the concept of perceived value pricing. What is the "key" to pricing in this manner? How might the marketer determine the price that the consumer might pay in exchange for that value that they receive? 

 

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$6.00
An increasing number of companies are basing their prices on the customer's perceived value
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  • Posted on Feb 20, 2012 at 6:47:36PM
A:
Preview: ... mic decisions must be made with these general principles in mind.  Changes in the supply and price can effect demand and quantity sold.             This consideration can be well illustrated in the case of pineapples.  If supply is changed, traditional economic theory holds that this equilibrium will be effected by such a change.  If demand and other factors are held at the same dynamic rates, a greater supply will increase units sold, but decrease the price for each unit.  When there is a surplus of items, the price of them must be lowered to come to equilibrium with the demand curve.  Going back to the example of pineapples, perhaps ten thousand consumers will buy pineapples when they are at $1.50 each. However, if the company begins to produce twelve thousand pineapples, they must lower the price to $1.25 in order to get enough purchasers.             These figures are used for illustrative purposes only.  However, they illustrate the point that a company face ...
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