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Pricer’s Points: Pricing strategies in digital era | Kothapalli Prathap Kumar

Pricing is an essential factor of differentiation for retailers along with location advantage. All the stakeholders of retailing have recognized the importance of pricing strategies, have been to redefining the strategy, tactics, and tools for optimizing the pricing strategies. The new digital era of big data, mobile commerce, analytics have changed the pricing strategy dynamics of retailing. In this article, I briefly discuss the importance of key-value categories (KVC), key-value items (KVI) in retail and relevance of these concepts in pricing, how digital era equipped tools changing the game of pricing, essential for price strategies.

Before going into details, let me define the objective of the pricing strategies in retail. A meaningful pricing strategy should increase the perceived value of the customer, convert prospects into customers and maximize business results (Sales, Margins). Any pricing strategy must answer the following questions: what is the target price position versus reference competitors, channel, and location, what is the right mix of price and promotion by category and channel? Which customer segment matters most? How do target customers shop? What drives value perception?.

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Pricing strategies in digital era | LinkedIn.