A reasonably educated person trying to make sense of it all, and a little tormented as a result. Thinking aloud, mostly.
These opinions rarely reflect the ideas of any of my employers.
Wednesday, July 25, 2012
Differential pricing in action
Last night we spoke about how a business needs to pitch its prices at a level that each segment is willing to pay. I got an instant answer, for example, to my question about the nature of the Tuesday cinema goers. Value seekers.
Similarly the sales promotion (essentially a discount) is targeted at a different segment.
And couponing is another way, differentiating customers by their willingness to cut out and manage them.