How To Influence Consumer Price Perceptions

Pricing is a consumer mindset: Consumers use mental accounting as they shop. It involves the use of a mental price scale to evaluate the prices offered to them. So somewhere between a price too low (what’s wrong with this?) and a price that appears way too high (you are out of your mind) there is a range of pricing that is reasonable to them. This price elasticity is what businesses seek to capitalize on to maximize their margins on the products and services they sell.