As I previously mentioned, performance predictors are not performance perceptions, they are reality! Following is an excellent example highlighting the difference.
Premium pricing is a strategy which suggests a business should set prices artificially high in order to encourage favourable perceptions.
As you can appreciate, premium pricing does not suggest you create more value or deliver additional benefits when increasing price ... it is simply about creating a false perception. This is not a performance predictor.
Pricing that reflects the true value (as indicated by consumers) and market position (in the mind of consumers) of the product or service is a performance predictor.
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