The Strategy and Tactics of Pricing, 5th Edition

Preface

One purpose of this book is to change the common misperception that pricing is simply about calculating the “right” price for a product or transaction. In the years since the first edition was published in 1987, we have learned that pricing, if it is to be effective, cannot be so reactive and simplistic. Profitable pricing requires looking beneath the demand curve to understand and manage the monetary and psychological value that is a primary determinant of the purchase decision. Mastering the value proposition enables a firm (1) to segment prices to reflect differences in value and cost, (2) to communicate the value of offers to customers unfamiliar with the market, and (3) to create pricing policies for managing pricing issues fairly ...