A pricing structure can transmit the value of a product to customers. If your structure sets a competitive price for the product, you indicate to consumers that buying your product is a good deal. An expensive product can tell consumers that the product is of higher quality than its competitors. Pricing structures are a strategic means of segmenting the market by price.
In other words, it allows a company to try to structure prices so that the total price paid is proportional to the willingness of a segment of customers to pay.
