Assume that we are producing covers of mobile phone.
Now, initially we used to provide packaging of medium quality so pricing was also according to it. But now we have changed our packaging and made it more attractive & we increased our price.
But, here the customers are not valuing the packaging and they are least concerned about the packaging. So, here our hard work and efforts failed because customer is not valuing the packaging.
But if we think logically from the customer’s perspective that because of premium packaging they are not getting anything extra and still they have to pay price and so even after giving premium packaging our sales will not increase.
So we should review our activities that whether they are creating any cost advantage or quality advantage or not.