Payless Shoesources

According to psychological pricing definition, this concept had been implemented by Payless to remove its outdated image. Payless hired some top designers to develope orignal footwear and accessory designs to keep new styles. It can set an opinion in customers’ mind by using this concept. For example, the customer may believe that the shoe price become high because it was designed by Laura Poretzky, and of course has a good quality. So, we think that Payless succeed in setting customer’s mind by implementing this concept.

Talking about reference pricing concept, Payless moved to change its image to be a fun and hip merchant of fashion by changing shop concept and design of the shoes designed by the top designers, and also increase the price little bit high. These are the that Payless had implemented this concept. Setting customer’s mind is one of the targets in implementing this pricing concept.

As we know, the Payless’ concept is selling a good looking shoes at affordable price. without changing the image that fashionable can be affordable, Payless must maintain its brand with keeping up the well designed shoes with affordable prices. It comes to a deviation from the company’s strategy when Payless rising up their prices along with the better styling shoes or keeping the price low with no innovation in their shoe styling. To stick with their strategy, Payless should keep their innovation in shoe styling along with affordable selling price of course. Although Payless rising up their prices, they should keep customers mindset that the product they are buying is worth the money they spent.