OnDemand WTP Pricing Research

Is Your Pricing Strategy Undermining Your Brand Value? | PROS

While similar luxury manufacturers also offered cars at different price points, there was no $20,000 Mercedes on the market — and with good reason. People don’t associate the Mercedes name and brand with affordable cars. As the 318ti sales dwindled, BMW learned a lesson about the relationship between price and brand, and the importance of a pricing strategy that protects the value of your brand in the eyes of customers.

You might think of pricing as just another aspect of the marketing process when you’re introducing a new product into the market. But pricing is closely tied in with your brand. In fact, it’s one of the ways you communicate your value to the market. With a premium brand, you would want your pricing strategy to convey that you offer the highest quality and the best products and services. So, you tend to set your prices in line with that higher value. Setting a lower price, on the other hand, helps communicate that you’re cost-effective or economical — a message that targets price-sensitive shoppers.

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Is Your Pricing Strategy Undermining Your Brand Value?.

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