I find this pricing structure funny!
Have you come across this thought while buying something online?
The perception of price unfairness may come in picture when the price offered differs drastically from the perceived value of the product/services received.
These days it has become necessary for digital marketers to price their products/services appropriately.
And to get the pricing strategy right, it’s pivotal to understand customer’s psyche and what makes them feel disappointed when you mess up on the pricing front.
There are multiple factors which may influence price unfairness perceptions, some of them are:
- A high degree of similarity (similarity in terms of the products/services received) between different transactions with different customers at different prices can instil a feeling of price unfairness
- Customers perceive the price to be unfair when they believe that the prices were set higher due to a scarcity of the product, without any substantial changes in the costs incurred
- Price unfairness perception could be high when the customers are buying your digital products for the first time. A customer who had purchased earlier from you may assume that the price increase would be justified even when they don’t know the reason for a price increase.
- Consumers also rely on their general knowledge about the market. This knowledge comes from experience by understanding the cost-profit relationships of the products/services advertised, a pricing structure which is abnormal as per the exchange norms can be adjudged to be unfair if the quality of the product/services received can’t justify it.
What other factors can you think of which influence your price unfairness perceptions?
Check out the post covered by Marketing Weekly to know about different types of psychological pricing.