Reasons and Methods for Customized Pricing

Perceived Value Pricing
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Parag Utekar
Student (MBA), India
Every marketer must understand that in most cases, the value of a product or service varies significantly across individuals. For example, the value of the latest innovation in tennis-racket technology is more valued by Roger Federer than someone who is an amateur at tennis. These are some of the main factors which cause value variation perceptions across customers and/or customer segments: PERFORMANCE DIFFERENTIALS FOR THE USERS: Think of the tennis racket. INTENSITY OF USE: Convenience features in an automobile will be valued more by someone using it each day for 3 hours or more. SIMPLE MATTER OF TASTE: Some people might think that Heineken beer is the best; others might prefer a Bud. AVAILABILITY OF DIFFERENT SUBSTITUTES: People having free access to TV-summaries of football games might not value a ticket for an actual game. DEALS OFFERED BY THE SUBSTITUTE (COMPETITOR): If a hotel's offers "50% off for couples" on weekdays, this might create a perceived value decrease in (...) Read more? Sign up for free

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Reasons and Methods for Customized Pricing
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