New Age Product Pricing

So, how should one price a product which one plans to introduce into the market ? Conventional theory suggests that you should price the product somewhere in & around your competitor's so that people don't reject your product based on price alone. But all that's changing in the new world order of global economics. The key thing which the new age consumer looks for is "Value" and not "Price". How do you provide more value with your product compared to your competitor, is what customers are asking these days. And the best part is they don't mind paying 10X more for these services if they perceive enhanced value being delivered to them.
Two such examples which have their origins in Bangalore is the PVR Multiplex (Gold Class) and Kingfisher Airlines. People don't mind paying 500 bucks for the Gold Class experience as opposed to just watching it at home for 30 bucks on a DVD. Similarly people would anyday fly Kingfisher rather than Air Deccan even though the latter might offer them a better price. So in my opinion it's all about quality and value you create for the customer and not about price at all.