Setting prices based on customers’ perceived value of what the product is worth to them. Customers will place a value on the product according to the benefit(s) the product provides in relation to any other similar products available in the market place. The more beneficial they perceive the product to be in relation to other similar products, the higher the price they will be prepared to pay. The price they are prepared to pay will, however, also be influenced by the amount of disposable income they have.