ABSTRACT
Customers’ awareness of price levels and perception of their appeal play an important role in how price changes impact their buying behavior. Both the availability and quality of price information, such as current interest rates, and management fees as well as a provider’s price image, can all help determine the relationship between price and purchase decisions. The image of a price (i.e. how it is perceived by customers) will have more of an influence on customers when they have limited knowledge of the product’s actual price. Indeed, research shows that psychological effects can have a significant impact on sales volume, revenue and profit of financial services products.
