The Rise of Value Marketing and Value Pricing 1. As marketers improve the quality of their products, customers come to expect higher quality from all products in a category. Japanese refer to this phenomenon as atarimae hinshitsu , meaning quality taken for granted. Quality is not always the deciding point in purchase decisions. Marketers are adopting value marketing , the process of designing, developing, and marketing products to give customers extra benefits and higher quality at fair prices.
Customers are generally willing to pay a higher price for added value.
By holding price steady as you improve quality, you can attract and keep more customers. Value pricing is the process of holding prices steady or cutting them while improving product benefits. The marketer must look at the trade-off between benefits and price from the customer's viewpoint. Instead of setting prices according to internal concerns, you set them to reflect your customers' perceptions of value. To prosper in today's high-pressure environment, consumer marketers are using value pricing to give their products an edge.