price image

Price image is described as the subjective customer perception of the price level of a supplier.

The development of the price image is based on a learning theory in which individual price experiences are aggregated to form an overall impression due to the lack of comprehensive price knowledge. Since the actual prices and the existing price image do not necessarily always have to be identical, the aim of price management is to positively influence the price image and create an impression (image) of value for money. In retail, it is assumed that the price image is significantly influenced by so-called anchor products. These key products are used by the customer to develop the respective price image. The cheapest milk or salt, for instance, costs exactly the same in each of the major discounters as the latter are anchor products.

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