OnDemand WTP Pricing Research

How to know if our pricing strategy is appropriate? | Business Model Innovation Hub

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In the current scenario of saturated and highly competitive markets, prices conventional policies do not bring the expected results to the income statement, such as calculating costs and adding a mark-up,, or fix our prices depending on the price competition. Maybe in the famous phrase, “only fools confuse value with price”, resides one of the keys to why conventional policies no longer have the expected results. The price is an objective variable, marked by a series of mainly economic parameters, and market, such as business costs and price competition, among others. However, value is a subjective concept that each consumer or client can determine about a product or service. But what is the difference between the paradigm of effective policies and prices that worked in the past?

Do you think the solution are revenue management and yield management policies?

In Spain there are many companies which do not apply yet this type of strategies in different industries, as a rent a car services, commuter trains, insurances, among others.

Could they  improve their Business models if these companies added  price estrategies?

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How to know if our pricing strategy is appropriate?

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