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(1) Rice with BBQ pork = $25 Single (2) Rice with chicken = $25 (3) Rice with BBQ pork & chicken = $27 Mixed CostSingle = Mixed PriceSingle < Mixed Example of value-based pricing Why ?
The negative slope means that the more you eat, the lower the perceived value. Perceived value Quantity of a particular kind of food in the meal Relationship between the perceived value and the quantity of food
Perceived value The quantity of BBQ pork in the meal Quantity Perceived value When eating, the perceived value of BBQ pork is decreasing. The most satisfied when you start eating The least satisfied when you finish eating Quantity Colored area = Total perceived value obtained from the meal
Perceived value Perceived value Single: Chicken Single: BBQ Pork A A B B Quantity Quantity Perceived value Perceived value The total perceived value is the sum of these two areas. A + A > A + B A A Quantity Quantity Mixed: BBQ Pork + Chicken Half the BBQ pork Half the chicken
Price Mixed $27 $25 Single Perceived value +
Go to the restaurant with a friend. • Order two different singles (e.g. BBQ pork and chicken). • Mix them yourselves. 2 × $25 $25 $27 Pay a lower price of the single item. But enjoy a higher perceived value of the mixed items.
? Product Place Manipulate the product to increase the perceived value Marketing Mix ? Price Promotion Any other way to increase the perceived value which, in turn, increases the price of the product?
GreenOnion Distribution Promotion Package & labeling comfortable & convenient environment distinctive image clean & informative Examples of increasing the perceived value