TITLE

A Question of Value

AUTHOR(S)
Smith, Gerald E.; Nagle, Thomas T.
PUB. DATE
July 2005
SOURCE
Marketing Management;Jul/Aug2005, Vol. 14 Issue 4, p38
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
This article focuses on the strategic pricing implications of customer value mapping and recommends the use of economic value modeling for pricing. The problem with customer value mapping is that it fails to distinguish between the value of benefits that are priced as commodities and the value of benefits that are uniquely differentiated by a brand. Meanwhile, economic value modeling properly distinguishes between the value of highly differentiated product benefits versus generally commoditized benefits. It calculates the savings and gains that comprise the product's actual economic value. The result is more robust and more accurate pricing that recognizes the true differentiation value of the product.
ACCESSION #
17913138

 

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