The idea
Customers judge both the amount and the reason for a price change. Cost explanations, prior expectations and the availability of alternatives can affect perceived fairness. A cost explanation is not a guarantee of acceptance. Review customer understanding, complaints and switching alongside the contribution effect.
Use it thoughtfully
- Write the customer-accepted reason before any rise.
- Never raise prices to exploit a crisis or lack of choice.
- Announce changes early, with the cost behind them.
An example
ILLUSTRATIVE EXAMPLE: A team cannot write a reason customers would accept for a festival-week price rise, so it delays the rise.
A question to try
For your next price change, can you write the one sentence a customer would accept as fair?
A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.