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.

What say you?