Pricing the Differential

Smith, Gerald E.; Nagle, Thomas T.
May 2005
Marketing Management;May/Jun2005, Vol. 14 Issue 3, p28
Customer value mapping (CVM) and economic value modeling (EVM) are held up as alter-native means to setting price. But their use leads to very different pricing outcomes. In this first of a two-part series, the authors show that CVM results in a series of consistent pricing biases that lead firms to get paid less for the differential value they create, especially with the market introduction of new, highly differentiated products, features, or services.


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