Companies spend huge amounts of energy and capital, creating value for customers, but less regard is paid to capture the value they have created. Segmentation based on consumer behavior reveals the huge differential in willingness to pay for subjective attributes of the product, such as convenience, status and quality. Purchase decisions are made based on the evaluation of the set of factors, balancing the perception component values from the prices in the subtle, complex, and often subconscious decision matrix. Customer-centric pricing requires the simultaneous and continuous evaluation of product attributes, customer perceptions, and the circumstances of time and place, listening to the client activity. It is a means of ensuring that companies assess the value they create for customers and extract the value from the market. "Hide
by Robert G. Cross, Ashutosh Dixit Source: Business Horizons 9 pages. Publication Date: November 15, 2005. Prod. #: BH175-PDF-ENG
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