Price perception
Price perception consists of the value a customer places on a product or service and how much they would be willing to pay for it. The concept is closely related to the term intrinsic value. From his personal price perception, a customer may perceive the actual cost of a product as too high or too low.
This is cleverly exploited by some companies by adjusting the sales price upward when the price perception allows it. Customers then pay too much money for the same product, without perceiving it as such. As a result, the store manages to increase its profit margin.
