Acceptability price

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The acceptability price or psychological price is the theoretical price that consumers consider the most appropriate. This price is likely to stimulate sales enormously. The acceptability price is not too low to avoid consumers associating it with a lack of quality. It is also not too high to remain affordable for everyone.

The price of acceptability responds above all to consumer expectations. Generally located below the cost price, it does not allow the company to optimize its profits and its turnover. o determine the psychological price of a product or a service, it is necessary to ask the opinion of a sample of potential customers.

Determining the price of acceptability is not really relevant for companies. Nevertheless, many companies use this technique to guide their choices during the product development phase. For example, they may opt for less noble materials so that the price set for sale is closer to the psychological price.

The price of acceptability or psychological price should not be confused with price psychology, a totally different concept.