Tickets for the latest Madonna tour at the 02 arena in London have been released. The prices range from c£100 (a seat in the 4th tier at the back of the arena) to c£450 for a seat on the floor, near to the stage.

To me, they seem exorbitant.

To people who want to see Madonna they may seem reasonable.

To the people who go, I expect they will think they’re good value.

Value is perceived benefit over cost. The variable is the perception which each individual places on the benefit.

Make sure you understand others’ perceptions of benefits before trying to explain the value of your product.