Monday, 11 August 2014

Geographic Segment Pricing of online marketing

• The seller recognizes that not all customers provide equal value to the firm.
• Pareto Principle states that 80% of a firm’s business usually comes from the 
top 20% of customers. 
• A+ customers: 
• A small group that contribute disproportionately to the firm’s revenues and 
• The most loyal customers who may become brand advocates to their 
friends and acquaintances = The frequent flyers. 
• They are also brand-loyal frequent customers who provide significant value 
to the seller. 
 When A+ or A customers appear at the Web site, they will be recognized 
and receive special attention. 
 They may not be price sensitive = they perceive that the brand/firm offers 
greater benefits + has earned their loyalty. 

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