Economy
Budget segment – products that are affordable telegram thailand viral and widely available on the market. They are often sold with minimal advertising costs or without any at all. Their appeal lies in their cost.
Examples of economy class goods:
everyday items from the brands “Every Day”, “Red Price”, products from FixPrice chain stores;
clothes from brands such as Modis and Tvoe;
Low-cost airlines: Pobeda, Air Arabia, WizzAir.
WizzAir
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Medium low
The products have a better price-quality ratio compared to economy class products. Their feature is a wide range of offers, brand promotion costs and marketing campaigns.
Examples of products with moderately low pricing policy:
fashion and style: H&M, O'stin, Befree, Rieker and Sela;
air carriers: Aeroflot, S7 Airlines and China Eastern Airlines;
everyday products: assortment of the Green Line brand, Chistaya Liniya ice cream, Ritter Sport chocolate.
Ritter Sport
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Medium high
Products that are priced below the price of similar premium products are distinguished by their superior quality compared to lower-end products.
Examples:
everyday products: Egoiste coffee, Toblerone chocolate;
cars: Ford Focus, Lada Vesta and Hyundai Elantra;
fashion and style: brands Adidas, Nike, Reebok, Calvin Klein, Guess.
Calvin Klein
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Premium class
The products are of the highest quality and corresponding price, thanks to the use of exquisite raw materials, added value for the brand name and significant marketing costs. Fans of products of this class appreciate not only the prestige and durability of the goods, but also their unrivaled quality.
Examples of premium products:
everyday items: products from the Azbuka Vkusa chain or Nature Own Factory chocolate;
cars: Mercedes-Benz A238, BMW G30, Peugeot DS9, Audi S6;
fashion and style: Tara Jarmon, See By Chloe, Sandro, Alexander McQueen.
Alexander McQueen
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Premium clients
Premium products attract the attention of an affluent audience whose needs contrast sharply with other categories of buyers.
Main consumer groups:
About 55% of premium segment clients are people with a consistently high income. Representatives of the business and creative elite, government officials and their relatives.
Approximately 20% are former representatives of the middle class. They strive to confirm their new status through attachment to exclusive and expensive things.
15% – pseudo-wealthy individuals. They want to improve their social position by purchasing elite and advanced products.
The remaining 10% are the middle class. They choose expensive goods as gifts or for important events.
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General characteristics of a buyer from the premium segment:
is characterized by high self-esteem and awareness of his own importance;
strives to emphasize his status;
values his time;
perceives high cost as an indicator of product quality.
Purchasing high-end goods is often motivated by the desire to stand out, please oneself and loved ones, and sometimes reduce stress or negative feelings. A premium store offers a unique range of products for the most demanding customers.
Understanding the difference between premium and exclusive products is essential because it concerns the main reasons for purchase. Buyers of the first products strive to have their choice highly appreciated by others. Owners of the second products do not focus on public recognition, but rather value the incomparable quality of their purchases.
Factors Affecting Audience Willingness to Pay
State of the economy
When the macroeconomy is stable, people tend to spend money, as opposed to during times of economic turmoil.
Different circumstances in which clients find themselves
Consumers may be in different circumstances, including their location, professional field, and intended tasks.
Customer willingness to pay
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Product seasonality
If a product is out of season, buyers lose the incentive to overpay for it. The cyclical nature of seasonality makes it easy to predict its effect based on data from previous years.
Different attitudes towards product cost
Each person approaches the issue of price of goods based on their own experience and financial situation, which forms an individual attitude to cost. People with a high income level tend to buy goods at high prices, especially when it comes to exclusive quality products and premium offers. Based on the analysis of various consumer groups, it becomes possible to develop an optimal pricing strategy, focusing on specific segments.