Consumer’s Price Evaluation
Ankeita MallS.G.S.I.T.S.
How do Consumer’s Process and evaluate Price?
Consumer’s Interpret Price from
1. Prior purchasing experience
3. Informal Communication
• Friends• Family• Colleagues
4. Online Resources
Purchase decisions are based on how consumer’s perceive prices
Blue Denims are priced differently and each purchased by consumer’s with different phychology
Are sold for Rs500 on streets
Symbolize Convenienceand Durability
Mid Segment Brands Retail at Rs1000
Signifies Fashion, Fit and Finish
Premium Brand’s sell at about Rs2500
Sells Craftmanshipand Lifestyle
Top Brands like Armani sells it for Rs10,000 and even more
It sells Exclusivityand Status
3 Key Topics that Define Consumer’s Perception of Prices
1. Reference Prices
Comparing observed price to a reference price
Price-Quality Interference
Using Price as Indicator of Quality
Price Endings
Prices ending with odd numbers makes the offer attractive
RECAP• Ways in which customer interpret price1. Prior purchasing experience2. Advertisements 3. Informal Communication4. Online resources
• Differentiated Pricing example• Keypoints Defining Consumers Price Perception1. Reference Prices2. Price-Quality Interference 3. Price Endings
Created by ANKEITA MALL, S.G.S.I.T.S. , during an internship by Prof. Sameer Mathur, IIM Lucknow. www.IIMInternship.com