Chapter 7
Price Level
Setting the Prices that Capture a Share of the Value Created
To this point, we have explained and illustrated how to create the conditions necessary to sustain price points that reflect the value that one’s products and services create for customers. Now we need a process to select value-based prices at which the firm can expect to sell its products and services most profitably. As the Harvard Business School professor E. Raymond Corey famously said, “Pricing is the moment of truth – all of marketing comes to focus in the pricing decision.” Economic theory prescribes a process for setting an “optimal” price level against a known demand curve assuming “all other things being equal.” However, ...
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