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.

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