Learning Corner

Value Based Pricing

Comments (2)
  1. Srujana says:

    True. But the challenge is that ,it is very difficult to quantify customer perceived value and their willingness to pay in monetary terms. Whenever such quantification happens it opens room for subjectivity that becomes debatable by the stakeholders, hence value based pricing though is an excellent concept it is very difficult to adopt.

  2. “Goal of pricing strategy is to assign a price that is the monetary equivalent of the value the customer perceives in the product while meeting profit and return on investment goals”. “The Value the Customer Perceives” varies from person to person. If the perceived pricing is at par with the actual pricing then the product delivers true value.