This paper argues that product prices are determined by consumers' perceived value. The value that consumers can perceive includes functionality, experience, and personalization. Then we need to combine these three points for product pricing. My job is business consulting, so I have the opportunity to meet a lot of entrepreneurs. Some entrepreneurs ask me for advice when they introduce their products to me. After reading it, I said that the products are all good,
but it feels a little expensive. He said that our product strategy is mid-to-high-end, and our products are to be sold to the middle class. Hearing text message service what he said, I wanted to say: Who did the middle class offend, why did they sell expensive things to us? But they generally ask, how should my product be priced? From a business insight perspective, product prices are determined by the value consumers perceive. What value can consumers perceive? ——Functional value, experience value,
personalized value. 1. Functional value What is functional value? A street vendor sells watermelons, and he directly puts on an eye-catching billboard (too sweet to sell) to sell a single watermelon. The billboard lets us know that this watermelon is particularly sweet, which is the functional value we can perceive. Another example is when I went to climb a mountain, I was very tired, and I was very hungry after climbing the mountain. After coming down, I quickly found a restaurant and ordered three large steamed buns. After I devoured it, I felt full. Steamed buns can be eaten.
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