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Economics

How do people judge whether prices are too low, too high or fair?

As a consumer how do you determine perceived value? What factors do you consider when decided to purchase a product from one company versus another company? How do you determine perceived value when deciding to purchase a service from one company versus another company?

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The Response Addresses the Queries Posted in 509 Words, APA References

Perceptions of Consumers

Means to Justify Price

In general, there are many ways through which people decide whether prices are too low, too high or fair. They judge the prices with their personal and social norms. Social norms are applied to everything and not only to prices. People start comparing these prices with the social set standards. Personally, they compare the utility received from the product with similar product by another company and its price and its utility (Introduction).

Perceived value of a Consumer

As a consumer my perceptions of value are determined with subsequent components:

Utility the product provides meets with my expectations.
I should feel good while using the product.
Product features entails sociality.
Price of the product is according to its ...

Solution Summary

The following posting discusses how consumers determine whether prices are too low or too high. The query is provided in 509 words with APA references included.

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