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Note on Retail Value and Price
Value means much more than simply price, more than the money the customer pays and the money the retailer gets. Value is the perception that customers have (or may be convinced to have) of the total package of benefits received at a price from the retailer. Price from the customer's perspective then becomes an indicator, a measure of the promised value. If the benefits appear to be substantially higher than the "cost" (the price being asked), the customer perceives the retailer to be offering "good value" and a sale is likely. On the other hand, if the cost is perceived as higher than the benefits, the value is note there for the customer. When customers say "the price is too high" they also mean "the value is too low." This note explores value and price from the retailer's perspective, including ways retailers set and change price.
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