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Pricing: Segmentation and Analytics by Tudor Bodea

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Chapter 4

Pricing in Business-to-Business Environments

In contrast to the pricing decisions discussed in the first three chapters, which involve estimating a price-quantity relationship, business-to-business (B2B) environments often involve a single bid opportunity where the entire bid amount is either won or lost. The probability that a bid will win is based on, among other things, a price that is customized by the sales organization for that particular customer or bid opportunity. In business environments companies are often required to respond to a potential client’s requests-for-proposals (RFPs) with a personalized offer. The customized response to these RFPs reflects the unique customer-company trade conditions and is frequently accompanied ...

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