Perceived Value Pricing (PVP) can be calculated where a panel of potential buyers estimate the price of a new product compared to other products which are already in the market. This method can be used with concepts or real products. The technique is used mainly through face to face interviews. It is a preferred approach if the client has little idea about the price level of the new product and is especially interesting for new inventions.
For new products, product development and relaunches you can identify price expectations.
- Identify the willingness to pay
- Make rough assessments of price elasticity
- Assess expected options within the product range
- Explore perceived differences in relative values
Promotional Products also rely heavily on this concept of perceived value same way as retail. If a company is to give a gift to clients they will wish to buy the most cost effective product with the highest perceived value. Packaging, customisation and POS display method are also key to increasing the perceived value of products.