Monday, 11 August 2014

Segment Pricing

• B customers are price sensitive + use the product category more than
do C customers.

• C customers: large group + may be price shoppers or infrequent users
of the product category, not accounting for much of the seller’s revenue.

• The seller’s goal is to keep A customers brand loyal and to move all
groups up to a higher level of value.
 Pricing strategies can help.
 Giving high-value customers the first shot at discounts will reinforce their

• B and C customers: might enjoy e-mail blasts with fixed prices so they
can be informed of the firm’s price +The seller can use this technique
to build a database for moving customers up in value. 

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