Price is not just the ‘’4 p” component used to capture get a just remuneration for your products or services, it is also,to many a key driver of your image and Value perception. This is why trying to undercut the competition by always pricing below their market rate doesn't always work. People buy because of rational and emotional factors, and to many price represents a promise of quality. People buy certain things because they are expensive, and feel good about it. People have expectations of quality goods, and if a company has a reputation for delivering quality goods and services, they may choose it over the competitor despite higher prices.
When comparing prices, different elements help people switch from the mindset of those looking for the cheapest price and into that of wanting to maximize the value of what they can get.
Pricing research is about finding what customers deem valuable, and the corresponding price they are willing to pay.