Question

Discuss what value means to customers and the role that price plays in value

“value is low price” implies that “monetary price is the most important determinant of value to a customer with the company focusing on price” (Zeithaml, Bitner & Gremler, 2018, p. 463). Marketers must recognize how they interpret various prices and how much of a perceived sacrifice. Pricing approach when customers define value as low price include odd pricing, discounting, penetration pricing, and synchro-pricing.

“value is everything I want in a service” refers to the get components of a service as opposed to monetary price. “The more desirable intrinsic attributes a give service possesses, the more highly valued the service is likely to be and the higher the price the marketer can set.” Several pricing strategies include, prestige pricing and skimming pricing.

                                                                                                  

“value is the quality I get for the price I pay,” this implies that some customers consider quality and monetary price. Marketers must recognize what quality means to the customers in order to match the quality level with the price level. Strategies that are involved include value pricing and market segmentation pricing.

“value is all that I get for all that I give” refers to the time, money and efforts incorporate into a service besides the benefits they receive. Pricing strategies include price framing, price bundling, complementary pricing, and results-based pricing.

I require someone to provide examples that go with each definition of value in order to understand the statement. Please respond only if knowledgable when answering the question.

Please respond only if knowledgable when answering the question.

Answer 1

Value can be of many types to a customer depending on the context. It can be emotional as well as utilitarian. In a consumer product example, value to a customer is mostly utilitarian. Price is a monetary value attached to a product or service and it is assumed that a customer is willing to pay this price to purchase the product and get the assumed utilitarian value from this product.

Thus, value and price are inherently related. The people who set the price do so keeping in mind the largest possible set of customers whose attitudes about whether the price is right or not will bear a decision on fixing that particular price. Because, if many customers perceive that price to be too high for the value that is promises to deliver, they will not buy the product.