Chapter 3
Price and Value Communication
Strategies to Influence Willingness to Pay
In Chapter 2, we argued that developing an effective pricing strategy requires understanding the value of your offer in order to set profit-maximizing prices across segments. Yet, even the most carefully constructed value-based pricing strategy will fail unless value of your offer, and how it differs from a competitor’s, is actually understood by potential customers. Although getting a good value is often one of the most important purchase considerations, customers who do not recognize your differential value are vulnerable to buying inferior competitive offerings at lower prices supported by loosely defined performance claims. Or, ...
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