For most firms, pricing is definitely a sensitive, private affair. Instead of leaving good money on the table and fighting to convert product differentiation into sales, the writers claim, and companies should think about enlisting the pricing help of the customers.
When Customers Help Set Prices Case Study Solution
Outsourcing pricing is not an all-or-nothing proposition. Supervisors can pick pricing versions that range from entire oversight to complete delegation. Citing examples from firms including Google, Uber, Orbitz, Volkswagen, Coca-Cola and Humble Bundle, the article integrates classic views on pricing with the newest research and practice to produce a simple framework to assist managers decide how much pricing control they ought to keep and how much they should relinquish to customers. For many businesses, the default approach selling to anyone willing to pay that sum and is having a single fixed price. For companies thinking about interactional approaches to pricing, the authors discuss three collaborative models: name, auctions -your-own-price auctions and discussions.
In the authors'view, requesting customers to weigh in on price can have benefits that go beyond promoting greater efficiency. It open up opportunities for increasing market share, provide opportunities for customization, allow supervisors to indicate information about their company or merchandise and can boost customer engagement.
PUBLICATION DATE: July 01, 2014 PRODUCT #: SMR496-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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