Psychological Pricing and Perception of Value in the Formation of Long-Term Brand Equity
Keywords:
psychological price, perceived value, price fairness, consumer loyalty, , brand equity, price stability, brand managementAbstract
This research aims to examine the relationship between psychological pricing, perceived value, and brand equity through a literature review approach. Psychological price is a concept that explains how consumers assess price not only as a nominal figure, but also as a symbol of quality, fairness, and emotional experiences associated with the brand. This research uses a thematic synthesis method to analyze various previous studies on the dimensions of psychological price, perceived value, and their implications for consumer loyalty. The results show that perceptions of price fairness increase satisfaction and loyalty, while price stability contributes to the formation of internal price references that strengthen consumer trust. Prices that are in line with consumers' emotional values have been shown to strengthen emotional loyalty and provide brand resilience to competitive pressures. This analysis also found that reliance on short-term discounts can weaken brand equity, while consistent pricing strategies support long-term positioning. The managerial implications of this research are the need for pricing policies that are transparent, consistent, and aligned with brand identity. Psychological pricing is therefore not merely a transaction mechanism, but a strategic instrument in building sustainable brand equity.
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