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Would you like to discover lesser-known aspects of pricing and consumer psychology? With PricingHUB, explore the concept of price image and how your consumers perceive your brand based on the prices you apply to your products or product ranges. Want to master the language of pricing? We break down all the important concepts here. Price image is an idea established in the mindset of a brand’s customers. Depending on the prices set for its products, a brand will be perceived in different ways by consumers. This concept should be identified and mastered to help you grow your business and gain market share. Price image can play as important a role as your visual identity, geographic presence, or communication. Price image is especially crucial for many companies because, for everyday purchases, price is often one of the main factors in the buying decision. It is therefore essential that your potential customers have the right price image of your company to encourage purchasing decisions. This concept can be a double-edged sword for a brand, greatly influencing its sales and revenue: Due to its subjective and personal nature, price image is not a unanimous or identical concept for everyone. Within the same population, there are often different cultural groups that may have varying price images of the same brand. Price image is obviously a completely subjective concept, built over time as a brand evolves and garners consumer interest. To construct a favorable price image, the first crucial step is to clearly define your price positioning in the market. The more your prices align with your initial positioning, the more your price image will logically work in your favor. Thanks to its recent legal expansion, comparative advertising is a major tool that can influence your price image to the detriment of a competitor. Even though the conditions for this type of advertising are quite strict, when implemented effectively, comparative advertising can significantly boost your price image in the minds of consumers and thus increase your sales. However, three important rules must be followed for comparative advertising to have a real impact: Some brands choose to implement promotions, either regularly or occasionally, to improve their price image. This strategy can be effective, but only if it is well thought out beforehand. While some brands base their entire reputation on frequent promotions and make it their selling point, others prefer to offer promotions at specific times and on select products. Promotions are essential for consumers as they create the perception of getting a good deal, directly influencing a brand’s price image. A brand that doesn’t engage in promotional tactics may be perceived negatively by the public, except for luxury brands. However, according to a 2015 Nielsen study, six out of ten promotions in the retail sector are not profitable. This figure underscores that increasing the number of promotions is not the best solution. Instead, they should be more targeted on strategic products and segments of customers, and better highlighted to attract consumers’ attention. The final important factor in shaping your price image is the overall consistency of your pricing strategy across your different products and services. It’s clear that a brand will place more emphasis on certain products or ranges that bring in higher profits and are more strategic. However, neglecting your pricing strategy for the rest of your products can be counterproductive, as a customer’s negative perception of one secondary product will inevitably impact the main ranges later. Therefore, it is important to maintain consistency throughout your entire catalog for the benefit of your overall price image and sales.Pricing tools such as PricingHUB can help you optimise prices of your full product catalog. Learn more about it Meet one of our pricing experts In most markets, consumers can easily switch to a competitor’s brand without additional costs, thereby increasing competition and the importance of being well perceived by consumers. This trend is further amplified today by the ease of comparison offered by the internet and various applications. It is very important to constantly monitor your market and competitors to know where your competitors’ price indices stand and how yours compare. If you are better positioned in terms of pricing than your competitors, you will have an advantage for common mass-market products. Conversely, in certain industries, such as fashion, a price that’s too low can be perceived as poor quality. Finally, keep in mind that a pricing strategy is never instantly effective—it is the result of a long-term process that needs to be adapted and adjusted according to external changes. With a long-term and global vision, you will be better equipped to anticipate and manage future developments and build a better price image than your competitors. Every company needs to pay attention to its price image, regardless of its industry. This lever can be a major factor in a consumer’s purchasing decision, especially in markets where differentiation is difficult, and competition is fierce. Therefore, companies must meet their customers’ expectations in terms of both product or service quality and price. For this, implementing a well-thought-out and precise pricing strategy is essential. However, price image also highlights the fact that pricing decisions should not only be based on the market but also on consumers’ perceptions. This exercise is extremely complex and involves a large number of variables. Therefore, it can be wise to use a tool like PricingHUB’s to determine this pricing strategy. Its machine learning algorithms continuously test to determine the price elasticity of each product or service offered and suggest prices that adapt based on the real conditions of your market and the commercial objectives you’ve set. To learn more, feel free to contact us for a meeting with our experts and a free demonstration of our solution. Price image is the mental shortcut customers use to judge whether a retailer is cheap, fair, or expensive — regardless of the actual prices. It’s built over time through promotional strategies, product selection, store layout, and communication. A strong price image increases traffic, drives trust, and directly impacts how customers compare retailers. Managing it well allows companies to maintain margins while still being perceived as offering good value. A business may offer competitive prices but still be perceived as expensive if it doesn’t communicate value effectively. Price image is based on customer perception, not on price points alone — making it essential to align pricing execution with brand messaging and customer expectations. To improve price image, businesses can highlight competitive prices on high-visibility items, ensure pricing consistency across channels, run targeted promotions, and clearly communicate savings. Regular pricing audits and customer research also help align perception with strategy. Strategies include prioritizing value messaging, reinforcing transparent pricing, using signage or digital tools to highlight savings, and balancing everyday prices with well-timed promotions. Visual merchandising, assortment design, and shelf placement also play a key role in reinforcing the intended price positioning. Price image influences store choice, purchase intent, and brand trust. Customers often judge overall affordability based on a few key items or experiences, not the full price list. Actively managing price image allows companies to remain competitive without resorting to widespread discounting that erodes margins. Discover all our pricing glossary articles Calculating a margin Omnichannel Relative price Meet one of our pricing experts
Everything You Need to Know About Price Image
What is Price Image?
A Price Image that Depends on Culture
On an international scale, it is important for a company to consider and analyze potential differences in perception to understand where its price image stands and whether it aligns with its pricing. The difference in how prices are perceived online and in physical stores, or the use of external information sources, also plays a role in how customers determine the price image of each brand.
Clearly Define Your Positioning to Be Perceived Well by Your Customers
Before considering your cost structure, margins, and profitability—which will impact your pricing strategy—it is essential to have a precise idea of the image your company should project to customers. There are four main positioning strategies that can be used to build an effective overall strategy:
Factors Influencing Your Price Image
Comparative Advertising
Promotional Strategy
Overall Consistency of Your Pricing Strategy
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A Long-Term Image Built on Competition
Using PricingHUB to Improve Your Price Image
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