Price Customization
The most powerful pricing strategies often employ customized pricing schedules such as product bundling, quantity discounts, multi-tiered pricing, or frequency programs. These pricing schedules permit selective targeting of different customer groups. By using innovative pricing schedules, we can define customers by:
- target market or segment
- value level placed on product or service
- geography.
The use of non-linear pricing also enables firms to lower the marginal cost to the customers of additional products wihtout jeopardizing the revenue stream from the current sale.
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