Perceived value pricing

One of the pricing strategies where a company fixes the price for a product not on the basis of its cost or required profit margin, but rather on the perceived value of that product in the eyes of the customer. Perceived value is made up of several elements, such as the consumer’s image of the product performance, the channel deliverables, the warranty quality, customer support, and softer attributes such as the supplier’s reputation, trustworthiness, and esteem.