Name: Eliakim O.

Magsayo Section: MAR-201

Student ID: 2020-130228 Course & Year: BSBA-MktgMgt 2020-2021
Date: September 18, 2021, Professor/Atty: Torre W. Dalilis

Pricing Strategy
Activity No. 4

Real Life Example of Value-based Pricing

Instructions:

Click the Article link below. Read and understand the article.
Think of a situation where you personally considered and applied the concept of value-based pricing
as a customer when buying for a product. It could be your own personal experience or your family’s
experience.
Write/type your experience below or in a new word/pdf file.

Example:

Mrs. Brown needed a new summer hat. She could buy one from the local “tiange” or bargain store for
less than 100 pesos or she could go to famous fashion store and buy one for 200 pesos. If Mrs.
Brown only cared about covering her head, bargain store would win, but since she cared about her
fashion sense, the famous fashion store wins.

Article Link: https://www.priceintelligently.com/blog/value-based-pricing

Points to remember:

There are nice products in the market where prices are too low but their target market is willing to pay
more. Setting a very low price can also damage a store’s/brand’s reputation as customers might think
that those products are of low quality.
Value-Based Pricing, is able to meet the desire profit and customers desire that convey a great
balance. I have done multiple purchases without consciously knowing that value-based pricing is the
method they use. Since, the age of being able to commute alone, impulsiveness through my
purchases came along together with that. I have bought products that satisfy me, looks good at first
glance, gave me a love and hate relationship and some doesn’t meet my expectations.

As the pandemic occurs, I no longer have school allowance that will satisfy my wants every after
class, like I used to. Currently, I was rarely given money, considering that, a lot of people suffering
with the current situation. It was the time I learned to weigh items I would consider purchasing, from
appearance, quality, to price.

In a scenario of purchasing clothes. I usually make a purchase online, since, lockdown always
applies. I have several apps I consider buying from such as Shopee, Lazada, Shein and Zalora. I
frequently go for Zalora, as it gives me multiple brands to choose from and various prices to compare
and contrast. As I experienced dismayed among numerous pieces at Shopee, Lazada and Shein.
Usually, issues with receiving different color, weak fabric, lint after laundered and uncomfortable.
However, whenever I choose Zalora consisting brands like H&M, ordered basic clothes for every day
wear, it gives me satisfaction, along with its garter that didn’t leave a mark through the skin, a classy
style that pairs with anything and a comfortable garments when sleeping.

Therefore, in this situation where I personally considered and applied the concept of value-based
pricing is H&M, as the prices was average enough for the mass to consume and meet customers
desire with its characteristics.