This link has been bookmarked by 1 people . It was first bookmarked on 23 Oct 2006, by David Leal.
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23 Oct 06
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value is so subjective that you can often be more successful charging higher prices, provided you pay close attention to all the other factors that influence the buyer's perception of your product's value
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have a look-see at the results of an MIT study of online buying that discovered "only 47 percent of the consumers... bought from the lowest-priced seller... In fact... price was the least important factor." And what beat price? The biggest factor was whether the customer had visited the site before (see why I go on about making the right impression with your site?), followed by the company's familiarity, then shipping time (think "service").
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You are not just offering your customers a price proposition; you are actually offering them a value proposition. It's a complete package, filled with lots of human-friendly usability elements: attractive but fast-loading and functional design; great information; great products; appropriate prices; and top-notch customer service, plus plenty of nice, little guaranteed-to-make-them-smile extras you devise to set yourself apart from competitors that just offer, well, a low price.
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Value is the key determining factor in all purchases, for both consumers and businesses. There are always "price shoppers," and they are a minority. Additionally, price shoppers are notoriously disloyal, so unless you have an overwhelming competitive pricing advantage, you are destined to lose out to those with deeper pockets and more staying power.
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