The effect of price and

package on consumers
Realised by:
Chaoui Imane
Fahim Ikram
PLAN 01 General

• DEFINITION OF PRICE

• TYPES OF PRICE

• DEFINITION OF PACKAGING

• TYPES OF PACKAGING

02 Price as a Key Factor

03 Packaging as a Key Factor

04 The Interplay between Price and Packaging

05 CONCLUSION

2
01 G E N E R A L
 DEFINITION OF PRICE

 A value that will purchase a definite quantity, weight, or

other measure of a good or service. In commerce, price is
determined by what a buyer is willing to pay, a seller is
willing to accept.
 The numerical value or cost associated with a product,
service, or asset, representing the exchange value in terms
of money or other units of value .

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 TYPES OF PRICE
Premium Value-Based Psychologic Freemium
Pricing: Pricing: al Pricing: Pricing:
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Offering a basic product

5
DEFINITION OF PACKAGE

A package is a container or wrapping that

holds one or more items or products,
providing protection, organization, and often
a means for transportation or presentation.
Packages come in various forms, such as
boxes, bags, envelopes, or other enclosures,
designed to facilitate the handling, storage, or
distribution of their contents
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 TYPES OF PACKAGE
Primary Packaging: This is the packaging that directly encases the product.
Examples include a box for a smartphone, or a bag of chips.

Secondary Packaging: Secondary packaging is used to group and protect primary

packages, making them easier to handle, transport, and display.

Sustainable Packaging: This type of packaging focuses on reducing environmental

impact.

Luxury Packaging: Luxury packaging is designed to enhance the perceived value of

high-end or luxury products.
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Primary Packaging Secondary Packaging Sustainable Packaging 8
02 Price as a key factor
 • The factors influencing consumer behavior
Consumer behavior is influenced by a wide range of factors, including:

1/Cultural factors :Culture, Subculture, Social class, Reference groups.

2/ Social roles and status :Peer groups ,Social networks ,Marketing

and promotional.

3/ Economic factors : Income and disposable income savings and

credit availability economic conditions.
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 • the role of price in consumer decisions
The role of price in consumer decision-making is multifaceted and influential. Price serves as a
critical factor in the decision process for consumers in various ways:

Perceived Value: Consumers often assess whether a product's price aligns with their perception of
its value. If the price seems reasonable or offers a good value for the benefits they expect, they are
more likely to make a purchase.

Budget Constraints: Price directly affects consumers' budget considerations. They must evaluate
whether they can afford a product while still meeting their other financial obligations

Quality Indication: Consumers may associate higher prices with better quality. In some cases, a
higher price can lead consumers to believe a product is of superior quality, influencing their
decision. 11
 • Psychological pricing :
Psychological pricing is a pricing strategy that involves setting prices to take advantage of
consumers' psychological responses and behaviors

Price Anchoring: Psychological pricing can also involve setting a high initial price (an anchor) and
then showing a discounted price, making the discounted price seem like a great deal in comparison.

Bundling and Decoy Pricing: This strategy involves offering a bundle that includes multiple
products at a price that seems like a better deal than purchasing each item separately. It can influence
consumer choices by creating a perception of added value.

Price Perception: Psychological pricing takes advantage of the way consumers perceive prices. They
often focus on the leftmost digits (the whole numbers) and are more sensitive to changes in these
digits. 12
 • the importance of price positioning in the market

Price positioning in the market is a critical aspect of a company's overall

marketing and competitive strategy. It involves determining where a product or
service stands in relation to competitors' prices and how it is perceived by
consumers. The importance of price positioning can be summarized as
followsCompetitive Advantage: Effective price positioning can give a company a
competitive advantage. By strategically pricing products lower, on par, or higher
than competitors, a company can differentiate itself and appeal to specific
customer segments. 13
Perceived Value: Price positioning can shape how consumers perceive
the value of a product. A higher price can imply higher quality, while a
lower price may suggest affordability. This impacts consumer
expectations and willingness to purchase.

Brand Image: The right price positioning can enhance a brand's

image. It can help create a sense of exclusivity, luxury, or value,
depending on the target market and pricing strategy
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03 Packaging as a Key Factor

15
 • the role of packaging in consumer decisions
Packaging plays a significant role in consumer decisions for a variety of reasons, as it is often the
first point of contact between the consumer and the product. Here are some key roles that
packaging plays in influencing consumer choices:

First Impression: Packaging is the first thing consumers see when they encounter a product. A
well-designed and attractive package can create a positive first impression, drawing consumers to
the product

Product Information: Packaging provides essential information about the product, including its
name, features, usage instructions, and ingredients.

Sensory Appeal: The texture, feel, and even the sound of opening packaging can enhance the
sensory experience for consumers. 16
 • the sensory and psychological aspects of packaging

The sensory and psychological aspects of packaging play a crucial role in influencing consumer
perceptions, emotions, and ultimately purchase decisions. Here's an overview of how these aspects
impact consumers .

About Sensory Aspects of Packaging: Visual Appeal, Texture and Feel, Sound, Aromas, Taste.

About Psychological Aspects of Packaging: Emotional Connection, Storytelling, Environmental

Responsibility, Association with Memories .

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 • the importance of packaging design and brandin

Packaging design and branding are of

paramount importance for businesses as
they significantly impact a product's
success in the market. The use of color,
shape, and materials in packaging design
is a critical aspect of brand identity and
consumer engagement
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Example the use of color, shape, and materials

The choice of color, shape, and materials

creates a visual and tactile identity for a
brand. Consistency in these elements helps
consumers recognize and remember a brand.
For example, McDonald's iconic red and
yellow colors, the distinct shape of an
iPhone box, and Apple's premium material
choices collectively form a strong brand
identity. 19
 The Interplay between Price and
04 Packaging
 How price and packaging are interconnected ?
Price and packaging are interconnected in several ways:

Perceived Value: The way a product is packaged can greatly influence how consumers perceive
its value. High-quality, attractive packaging can lead consumers to believe a product is of higher
quality and therefore justifies a higher price.

Shelf Presence: Packaging plays a crucial role in attracting consumers' attention on store shelves.
Eye-catching packaging may allow a product to command a premium price due to its visibility
and appeal.
Consumer Expectations

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“How companies use research to refine price
and packaging strategies ?
 Companies leverage research to refine their pricing and packaging strategies. Through
competitor analysis and consumer surveys, they gain insights into optimal pricing
points and consumer preferences. Price elasticity testing allows them to find the right
balance between demand and profitability. Packaging research, on the other hand,
helps in designing packages that align with consumer preferences, from colors and
materials to usability and emotional impact. Both pricing and packaging strategies are
refined based on this research, ensuring that products resonate with consumers and
remain competitive in the market.

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Case : Company: Glossier
Pricing Strategies:
- Affordable Luxury: Glossier offers high-
quality cosmetics at affordable prices, attracting
a wide consumer base.

- Value Sets: Encourages bulk purchases with

discounted product bundles.

- Subscription Services: Builds customer

loyalty and guarantees recurring revenue
through subscriptions.

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 Packaging Strategies:
- Minimalistic Design: Glossier's
clean, Instagram-friendly
packaging appeals to its millennial
and Gen Z target demographic.
- Sustainability: Introduces eco-
friendly packaging and refillable
options.
- Customization: Enhances the
unboxing experience and
encourages social media sharing.

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Impact on Consumer Behavior:
- Brand Image: Glossier's strategies create an
image of accessible luxury, appealing to
younger consumers.
- Customer Loyalty: Subscription services
and value sets incentivize repeat purchases.
- Sustainability Appeal: Attracts eco-
conscious consumers.
- Social Media Engagement: Encourages
user-generated content and word-of-mouth
marketing. 27
 05 Conclusion
In conclusion, the interplay between price and packaging has a profound impact on
consumers. Pricing influences purchase decisions, with consumers being highly
sensitive to the cost of products. Strategic pricing can attract and retain customers
while maximizing profitability. Meanwhile, packaging design not only safeguards
products but also establishes brand identity, evokes emotions, and enhances the
overall consumer experience. The aesthetic and functional aspects of packaging play a
vital role in attracting consumers and influencing their perceptions. Together,
effective pricing and packaging strategies can create a powerful synergy, ultimately
shaping consumer choices, loyalty, and the success of products in the market.
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Thank You For Listening