4.2: Pricing

Set the right strategic price ... to attract the mass of target buyers.

Other Information:

It is increasingly important ... to know from the start what price will quickly capture the mass of target buyers. There are two reasons ... First ... volume generates higher returns than it used to... second ... to a buyer, the value of a product or service may be closely tied to the total number of people using it... the strategic price ... must not only attract buyers in large numbers but also help ... retain them. Given the high potential for free riding, an offering's reputation must be earned on day one, because brand building increasingly relies heavily on word-of-mouth recommendations spreading rapidly through our networked society. Companies must therefore start with an offer that buyers can't refuse and must keep it that way to discourage any free-riding imitations... We have developed a tool called the "price corridor of the mass" to help managers find the right price for an irresistible offer ...

Stakeholder(s):

• Buyers
  • Attraction (Performer): Attraction to the offering due to its value for the price

Indicator(s):

Indicator:1

Content