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EP45: The Psychology of Pricing - Value vs Perception in eCommerce

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The Psychology of Pricing in Premium Brands

This chapter explores the intricate psychology behind pricing strategies in premium brands like Fender and Milk Bar, focusing on how brand perception and celebrity endorsements influence consumer behavior. It discusses the significance of transparent communication during price adjustments and the emotional connections consumers form with products, especially in the context of subscription services. The chapter emphasizes the importance of understanding customer identity and perceived value when determining effective pricing to maintain brand prestige and customer loyalty.

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