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Price Wars have broken out in consumer industries around the world. In fact, retailers such as ALDI, Amazon, and Walmart have used price to position themselves against traditional competitors in the market, pinching margins all around. Prices are being reduced because of the belief that this will boost their perceived value to consumers, who implicitly weigh price against product features and benefits in their purchase decisions.

With the pressure to reduce prices intensifies, companies are acting hastily and when decisions are made on pricing, the question now is do customers notice. Often the result is customers do not notice these things. What ultimately matters is how customers perceive the price point.

Organizations need to map a path to improved perception. The Price Perception framework presents 4 strategies and 15 tactics that can help businesses get more credit from consumers.

1. Offer Low Prices
2. Provide Savings and Deals
3. Promote Prices
4. Tailor the Customer Experience

Having a good understanding of Price Perception will allow businesses to make better decisions when it comes to pricing and gaining deeper grasp of its current price position vs. consumers' perceptions.

This deck also includes slide templates for you to use in your own business presentations.

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Source: Pricing Perception PowerPoint document

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Tag(s): Customer Experience Pricing Strategy

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