11.2 Pricing Impact on Value of Products or Services
Learning Objectives
- Describe the customer view of value and pricing
- Discuss psychological factors in pricing
- Discuss how price affects the value of an organization’s products or services
Price determines how much revenue a company is going to earn. It determines whether the business is covering the costs to create and deliver its products. Price drives the financial health of the business.
In out initial discussion of pricing, we’ll start with the perspective of the customer. If the customer doesn’t see value in the product offering—and that includes pricing—company objectives won’t be met. Customer perceptions of value must be the central consideration in the pricing process.
The specific things you’ll learn in this section include:
Learning Activities
- Reading: Demonstrating Customer Value
- Reading: The Psychology of Pricing
- Video: Value in Branded Eyewear
- Self Check: Pricing Impact on Value of Products or Services