Determining the next best alternative price is an important factor of value-based pricing. The next best alternatives price serves a comparison point for companies when they determine a value-based price for their new products. Firms determine the value of their product or service by comparing to the next best alternative product or service. A product […]
Willingness-to-Pay evolves over time Most products and services experience a development in willingness-to-pay (WtP) over time. For some products, illustrated by the chart on the left, WtP declines, as customers consider it less valuable. This can be the case for perishable goods, but also many technology products, where there is a novelty factor, or where […]
How much do you have to discount your consulting fee rates for if you want to have an impact on buying behaviour? 5%? 10%? 20%? Research we carried out five years ago suggested that small price cuts make no difference, except perhaps to the procurement manager who has the lonely and thankless task of demanding […]
Companies that succeed at analytics-based pricing build a strong foundation—and include their salesforce in developing it from the start. Like many of its peers, a medical-technology company was struggling to adapt to changing market dynamics. Its traditional relationship-based sales model was coming under threat from increased competition and scrutiny from hospitals, while end users, especially […]
In this, the second in our series of “ARI Management Masterclass” features, we are taking a look at pricing strategies. Between now and the end of the year, we are going to present you with a carefully selected group of in-depth features looking at the “Six Deadly Sins” that many aggregates businesses commit every day. […]
Summary: Now is the time to answer that “value” question so well and so completely that your organization thrives. The biggest winners in the 21st century will have value-based strategies, value-based innovation, value-based marketing, and value-based pricing. There has never been a more exciting and lucrative time to pay attention to value and turn a […]
Are consumers more likely to buy if they see the price before the product, or vice versa? Uma Karmarkar and colleagues scan the brains of shoppers to find out. by Carmen Nobel Think of the last time you went shopping. By the time you decided to buy a product, you knew both what you were […]
Do you want to know how to price your products more effectively? Choosing the right price is a common problem for business owners, particularly in new or rapidly-changing fields, where prices are not set in stone. A popular approach is just to copy or try to undercut your competitors, but there are smarter ways. Academics […]
Fear of change and fear of failure often cause companies to abandon their efforts to be more strategic in their pricing decisions. Statements like “We will lose business if we raise prices”, or “Sales knows their customers best and how much their customers are willing to pay” are symptomatic of those fears. While there may […]
How sensitive is the consumer to the price of the product or service? Of the companies we surveyed, 41 per cent analysed the sensitivity of their customers to price changes. Of all the factors that should be considered when setting prices, price sensitivity is the most complex to assess. It requires organisations to establish relationships […]
Higher price means higher quality in consumers’ minds: Study | Big News Network
Washington D.C [USA], July 24 (ANI): Why are we willing to pay much more for a six pack of craft beer, a locally produced bottle of wine or a regional brand item, often choosing them over national brands? It’s because when people prefer to ‘buy local,’ they more frequently base their decisions on price as […]
Disneyland ticket prices have skyrocketed more than 5,000% since the Anaheim theme park opened in 1955, according to a new study. A study from the United Kingdom-based Play Like Mum mommy blog looked at the rising costs of admission tickets over the past six decades at Disney theme parks around the world. Disneyland admission cost […]
Job: Principle Pricing Analyst | Worldpay
Description Principle Pricing Analyst The Company Worldpay is a global payments leader powering international commerce with deep fintech expertise and a shared passion for our customers. Whether in-store, online, or on a mobile device, we process over 40 billion transactions annually and offer more than 300 payment methods supporting 126 currencies across 146 countries. It’s […]
Considering a Subscription Model? Avoid These Rookie Mistakes | IndustryWeek
The subscription economy is taking business by storm. Entire industries have moved to subscription-based pricing, leaving behind some of the slow movers but also giving new life to companies that were struggling. Some talk about the end of ownership and the start of usership. It is a real revolution. Industrial companies have lately been getting […]
Statistics for Dynamic Pricing of Theatre | Towards Data Science
Summary: Dynamic pricing is the practice of adjusting a price to meet its demand, or market value. Given the difficulty of selling 100% of a performance’s tickets and that any unsold tickets immediately expire once a performance starts, dynamic pricing shows promise of lowering ticket prices while increasing revenue for shows. Included are several statistical […]
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