In class we discussed "what makes you pay the price?" and that really got me thinking. Everyone holds a different sense of value for how much a product is worth, so how does anyone settle on the perfect price? One thing that i came to realize is that a customer will pay the higher price when they feel a greater value for a product. Sometimes this can even be applied to a store, for instance Nordstrom's will capture their customers by being known for excellent customer service. Therefore even though the items are more pricier there then at other department stores, its ok because you feel so much more appreciated and respected when you leave. In addition to high quality service Nordstrom's invites customers that meet a set amount on their Norstrom's credit card to an exclusive Christmas party. Here they get the first look at upcoming sales while enjoying complimentary appetizers and champagne. Perks like that definitely help to set a high price that is easily met by loyal customers.
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