Pricing is one of the intriguing aspects as buyers tend to use price as an indicator of both service costs and service quality– price is at once an attraction variable and a repellent.
Depends on several factors, price is an indicator of quality used by customers, one of which is the availability of information to them (Zeithaml, et al., 2009).
When quality is hard to detector price varies great deal within a class of services, these conditions is typify situation faceconsumers when purchasing services, customers tend to use price as an indicator of quality.
Customers react to products or services and their prices has implicate by their quality.Customers often consider purchasing the item only when the products meet minimal qualitystandards and rarely purchase with the highest quality.
Many observer assume that quality is directly associated with price. That is, higher price serves as an indicator of higher quality.
If such a relationship exists, it would seem to complicate the ability to determine value.