Conceptualization of perceived value pricing in strategic marketing

Abstract

Perceived value pricing is an important price setting procedure. Perceived value pricing indicates the importance of providing benefits and functionalities to the consumer and the simultaneous need to price it effectively so that the firm can take appropriate value. Perceived value pricing is effective in pricing of premium goods and services with a large intangible component. Perceived value pricing are emerging as a third alternative to skim pricing and penetration pricing strategies. The study conceptualizes the construct of perceived value price, examines methods to build perceived value, discusses issues in management of perceived value and lays out implications for pricing strategists through an empirical study that suggests ‘money for value’ is acceptable to the consumer.