Pricing, perceived value, and communications - how communications can increase contribution through price
Don SextonColumbia University
What is the most difficult component of the marketing mix to get right? In surveys, managers most often say it's pricing.
The reason pricing can seem difficult is that many managers are not thinking about price the right way. They approach pricing from the standpoint of costs, not value perceived by the customer. Looking at pricing only from the cost vantage point makes it difficult to determine price and difficult to manage price.
Looking at pricing from the viewpoint of customer-perceived value...