It seems that many people equate the price of the product to be equal to it's value.
The dictionary defines Price as “The amount of money or goods, asked for or given in exchange for something else.” Price is a very simple mathematical concept. A price can be written on a tag or published in a catalog. We all know what a dollar bill looks like and we all understand its relative worth.
The relationship between price and value is usually expressed as “cost.” The final cost is the value of the item less the price. Every purchase involves a value calculation. Prospects usually measure the risk of making a purchase against the potential reward. The greater the risk, i.e. the greater the required outlay of cash, the more effort they will put into the decision making process. Their perception of value is directly related to how much they know about the product they plan to purchase.