How to measure emotional value of products and use it for pricing

  • I have been always debating that one of the major part of pricing any product also includes the Intuitive/Emotional/Convenience pricing. I am finding different manners to measure it and then put it into product pricing. Would love to listen to all of you about various ways that you use to incorporate it. LinkedIn Question by: Tushar Vashnavi

In the simplest possible way you can do the following:

  1. Identify brands u r competing with and do a price analysis, keeping all other factors (ingridients, features, technology, etc.) same. Chances are that these brands are able to charge more, due to advertising (building emotional value) or services (adding rational value)
  2. Identify the emotional and rational values being offered by these competitors. Simplest ways to do this is to have a qualitative study among your target customers and validating with a dipstick quantitative survey (~100 respondents)
  3. Using these value factors, test out your brand’s / product’s comparative position among the brands – on a 5-7 point scale. eg brand between brand A and brand B which one you feel offer more convenience? Probably you can do it as a part of the validating exercise stated above.
  4. Finally, depending on your choice of differentiating value vis-a-vis your competition, you can set a differentiating price, again comparing with your competition.

Lastly, many of us have a tendency to “assume” or have a “gut-feel” about putting a price based on an Intuitive/Emotional/Convenience factor, which is good! But even then, it’s always better to have a reality check through at least step 3 mentioned above, so that you’re sound in your judgement.

Also look for Other Answers.

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