Chapter 4

Price Structure

Tactics for Pricing Differently across Customer Segments

DOI: 10.4324/9781003179566-4

After developing products or services that create value and making customers aware of it, a marketer must determine how most profitably to capture a share of that value in both volume and margin. The challenge is that individual customers will value the differentiating features of products and services very differently due to differences in their abilities to pay, their subjective preferences, their end-use applications, and their prior experience with the product category. Moreover, the timing of customers’ needs, the speed of their payments, and the level of service and support they require can drive significant differences in ...

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