There are three key differences between customer evaluation of pricing for services and goods.

1) Customers often have inaccurate or limited reference prices for services.

2) Price is a key signal of quality in services.

3) Monetary price is not the only price relevant to service customers.

Service providers m ust understand how customers perceive prices and price changes and w hat role does price play in consumer decisions about services. Reference price is a price point in memory for a good or service and can consist of the price last paid, the price most frequently paid or the average of all prices customers have paid for similar offerings. You can compare your reference prices with the actual price of these services from the providers in your hometown. Because services are intangible and are not created on a factory assembly line, service firms have great flexibility in the configurations of services they offer. It is very difficult to answer about prices for a medical check-up. If you are like most consumers, you probably wanted more information before you offered a reference price. You probably wanted to know what type of check up the physician is providing. Does it include x-rays and other diagnostic tests? W hat types of tests? How