Consumers choose
products on the basis of the products’ perceived attributes. These attributes
represent the positive and negative utilities that the consumer perceives from
its ownership. For example, a consumer derives a benefit from a comfortable
pair of jeans. If a consumer tries on a pair of jeans that are uncomfortable,
the jeans may be rejected, even though they may be perfect in every other way.
In this situation, a consumer would likely be prepared to pay a little more if
the jeans could be adjusted to make them fit more comfortably. Alterations, for
a small additional fee, are a common means of resolving such situations. Thus
consumers are prepared to pay a premium to overcome negative product
attributes. Similarly, customers who perceive that customized
items overcomes negative products attribute will be prepared to pay a
higher price for this product, relative to a standardized off-the-rack product.
The more a
consumer perceives customized items
to overcome negative product attributes, the higher his or her willingness to
pay a price premium for these products. The appearance of Customized items kids
makes it possible to purchase them at large
quantity.
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