The document discusses how consumers evaluate and perceive prices. It outlines that consumers interpret prices based on prior purchasing experience, advertisements, communication with others, and online resources. An example is given about blue denim jeans being priced differently based on brand from $5 for street brands to $10,000 for high-end brands. The key factors that influence consumers' price perceptions are reference prices, using price as an indicator of quality, and prices ending in odd numbers.

1. Consumer’s
Price
Evaluation
Ankeita Mall
S.G.S.I.T.S.

2. How do
Consumer’s
Process and
evaluate
Price?

3. Consumer’s
Interpret
Price from

4. 1. Prior
purchasing
experience

6. 3. Informal
Communication
• Friends
• Family
• Colleagues

7. 4. Online
Resources

8. Purchase decisions are
based on how consumer’s
perceive prices

9. Blue Denims are
priced differently
and each purchased
by consumer’s with
different phychology

10. Are sold
for Rs500
on streets
Symbolize
Convenience
and Durability

11. Mid Segment
Brands Retail at
Rs1000
Signifies Fashion,
Fit and Finish

12. Premium Brand’s sell
at about Rs2500
Sells Craftmanship
and Lifestyle

13. Top Brands like Armani sells it
for Rs10,000 and even more
It sells Exclusivity
and Status

14. 3 Key Topics that
Define Consumer’s
Perception of Prices

15. 1. Reference Prices
Comparing
observed
price to a
reference
price

16. Price-Quality
Interference
Using Price
as Indicator
of Quality

17. Price Endings
Prices ending with odd numbers
makes the offer attractive

18. RECAP
• Ways in which customer interpret price
1. Prior purchasing experience
2. Advertisements
3. Informal Communication
4. Online resources
• Differentiated Pricing example
• Keypoints Defining Consumers Price Perception
1. Reference Prices
2. Price-Quality Interference
3. Price Endings

19. Created by ANKEITA MALL,
S.G.S.I.T.S. , during an
internship by Prof. Sameer
Mathur, IIM Lucknow.
www.IIMInternship.com