In this era of price transparency, you would think that it’s easy enough for a retailer to convey its price image to potential customers. After all, price image is a reflection of a store’s average price level so managing the price also manages the price image – right? Like so many things in life, it turns out that it’s not quite so simple. In our blog post, 7 Facts Every Retailer Needs to Know About Price Image, which was recently featured by in the Furniture News January Issue, we discuss the factors that influence the retailer’s price image.
Price image is critical because a consumer’s perception of a retailer’s average price level will have a profound impact on her behavior. It will determine to what extent she will engage in comparison shopping, which retailers she will visit (and in what order), whether she will actually purchase an item and, if yes, how many items.
In short: price image is not determined by prices alone but is a function of all the marketing-mix variables. As such, price image is an important aspect of a retailer’s strategic positioning and needs to be managed accordingly.
For the full article, visit the Furniture News January Issue.