Imagine you won an amazing last-minute vacation on an exotic island. Maybe a Caribbean wildly beautiful island in January, where the sun is shining on stunning white beaches. Your skin needs sunscreen, and you rush to the supermarket to buy your favourite suntan lotion for 30 dollars. When your flight finally lands, your luggage is lost. No way. You cannot lose one single day at the hotel and decide to buy another sunscreen tube to enjoy your vacation. You go to the hotel shop. There, you may choose a cheap “second choice” lotion at 15 dollars, or you may buy the same high-SPF suntan lotion you like for 50 dollars. What? Yes, you buy it, even if you know it is almost double the price.
What I want to point out is that value is something different from cost, and perceived value in case of emergency is higher than normal perceived value. Continua la lettura di Price is What You Pay. Value is What You Get. (Part I)