Pricing is the most important driver of gains. Pricing is also, surprisingly, the place most executives overlook when executing initiatives to raise profits. There is a reason: Research presented in this article indicates that most executives implicitly hold on to a string of weakly held hypothesis about pricing that eventually are self-defeating.
These pricing myths are that (1) costs are the foundation for price setting, (2) modest price changes have little impact on gains, (3) customers are highly cost sensitive, (4) products are difficult to discern, (5) high market share results in high profits, and (6) handling cost means changing prices. This research reveals how executives can overcome these misconceptions and so implement sustainable profit developments via pricing.
The six pricing myths that kill profits Case Study Solution
PUBLICATION DATE: January 15, 2016 PRODUCT #: BH718-HCB-ENG
This is just an excerpt. This case is about SALES & MARKETING
Related Case Solutions & Analyses:
Bundy Asia Pacific–China Strategy
Four Products: Predicting Diffusion (2008)
Corporate Positioning: How to Assess–and Build–Companys Reputation
WaterTest Corp.
Ford Motor Co.: The Product Warranty Program (A)
Multiple Regression and Marketing-Mix Models
Reinventing Brainlab
Can you measure the roi of your social media marketing?
LightFull Foods
Xanadu on Broadway
