How Perceived Benefits Impact Pricing Strategies

In general pricing evaluations are hard and complicated to make. The decision makers must consider all the pricing strategies and propose their tactics. Setting the strategy means finding the correct prices for a new or existing product according to market and consumer’s acceptance. The plan must fallow with different tactics about changing prices over a period of time. Some times the emphasis on price is not significant because consumers care more about the real value of the product rather than it’s price. In fact, price is basically the amount of money that a shopper agrees to pay for the service (Porter, 2010). When consumers understand that the benefits of the product and service are perceived as greater than their costs, the perceived value is high, and the likelihood of paying more money for the product increases. A good example in this regard would be the hearing aid adoption rates that have remained essentially unchanged over the past 30 years. Study shows that people are willing to pay more for hearing aid technology when perceived benefits (based on evidence-based findings) are delivered properly. “With respect to hearing aid technology, experienced listeners, in general, were willing to pay significantly more than their inexperienced counterparts [F(5, 104) = 3.21, p < .01]. Here, only the benefits of improved ability to hear in background noise (ie, directionality) and professional services were statistically significant (p < .05) between experienced and inexperienced respondents. For directionality, listeners with hearing aid experience were willing to pay the retail price of $304.58 (CI95 + $31.78), while listeners inexperienced with amplification were willing to pay $258.33 (CI95 + $31.78). The analysis also revealed that listeners inexperienced with amplification were willing to pay $337.08 (CI95 + $60.09) for the dispenser's time and expertise during the fitting process, while listeners experienced with amplification reported a significantly