Emotion-Driven Pricing Models Transform Consumer Value Perception in Experience Economies

Abstract

With the modern-day experience-oriented economy, product features and utility no longer determine consumer spending but emotional engagement and value. Classic pricing models based on static or demand calculations miss the emotional dynamics of their real -time consumer interactions, and as such, they disappoint consumer expectations, disappoint consumers with sub-par satisfaction, and under-optimize their revenue. This paper focuses on the necessity of an adaptive pricing strategy based on the real -time emotional state of the consumers in immersive services like virtual reality, live entertainment among other interactive exhibitions. To address this issue, we are suggesting an Emotion-Driven Adaptive Pricing (EDAP) model that combines biometrically detected emotion, sentiment analysis, and price sensitivity of the consumer to dynamically customize the pricing of services. Using facial recognition, voice analysis (tone), and data collected from wearable sensors, the system categorizes consumers’ feelings and sets dynamic pricing in real time depending on the Emotional Value Score (EVS) and threshold values that are regulated by feedback. Using simulation, the results of 1,000 consumer profiles and different experience types reveal that EDAP greatly increases the level of emotional satisfaction, improves perceived fairness, and raises provider revenue as compared to static pricing techniques. This research shows the efficiency of emotion-aware pricing as a transformative model, which brings the consumer perception in line with the economic value in the developing system of experience economies.