Price has an important role in purchasing a product or service. Higher the price, the less ability to buy that good. An increase in price discourages customers from buying it. Price and purchasing power of customers are inversely proportional to each other. Some people charge their services per square foot. Mostly in construction industry services are charged per square foot.you can find price using online square footage price calculator.
Here are some key points which affect purchasing behavior and decision making of consumers.
Demand:
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One of the primary elements affecting demand for an object is price. Generally speaking demand rises when the price of a product decreases. If a consumer believes the product he is going to buy is valuable for the price he pays then demand increases.
Perceived value:
Customer behavior changes when they judge the price of a product. If the price of a product is high people believe that product is of higher quality. Similarly people consider low priced products or exclusively discounted products associated with low quality or standard. It is the general perception of people which impacts purchasing decisions.
Income Effect:
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Purchasing power of a person is significantly affected by the income of a person. If a person has low income he will purchase necessary things first. He will allocate more budget to buy certain objects which decreases his ability to buy other goods. It decreases the demand for that good.
Some people charge their services per square foot like a carpenter earns a rate per square feet of a kitchen. You can ask him rate and find total expense by using Price per square foot calculator
Substitution Effect:
To overcome the need of a product, consumers may buy cheaper alternatives of a high priced product. For example a person needs to buy clothes he can go to a branded shop but to save money the same clothes can be purchased from the local market. The need here is to buy clothes. You can buy an expensive one or a cheaper one depending upon you. Similarly if two brands are providing the same products people will be attracted to more with low priced products.
Psychological Effects:
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Many brands understand the psychology of humans and design deals and products according to them to raise their sales. Consider a perfume priced $10 dollars but brand tag price $ 9.99 dollars which is 1 cent but visually it creates a good impact. This phenomenon of lowering price is called charm pricing or left digit effect.
Brand perception:
The image of a brand depends upon the price of the product. If the product price is very high the customer considers the brand as a luxury brand. Whereas exceptionally low prices can be considered as cheap or poor quality products.
Promotions and Discounts:
Businesses can intentionally rely on price changes to entice potential customers especially during sales and promotional events. Discounts and temporary price cuts can generate immediate sales for the brands.
Inflation and Deflation:
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Both inflation and deflation significantly impact consumer behavior and purchasing power.
Customers tend to spend less money and have less purchasing power during inflation.Some businesses charge their services as square per feet . They can use the Price per square foot calculator to know their earning.
Conclusion:
Price of a product has a big impact on how customers decide to buy the product overall . Price of a product also affects demand, perceived value,brand perception and overall purchasing power. Businesses take care of price effects on consumers when deciding their pricing strategies and positioning their products in the market.
