Pricing with Exchange Value Models: Competitive Based Pricing using Differential Value
What does value based pricing mean? How can a new product be priced right when it is revolutionary? How does competition influence the optimal price? How can a firm capture the value they deliver when they launch a new product? Must a firm always price below the competition when entering a new market? Can a firm price significantly higher than the competition and still successfully take market share and convert customers?
In Pricing with Exchange Value Models, Curry will provide an approachable overview of the leading method to setting prices based on value. The approach leverages insights of voice of the customer (VOC) studies and the whole-product concept to define launch prices and price structures which both deliver profits and entices customers.
- What Exchange Value is and how it relates to pricing strategy.
- How to construct an exchange value model (EVM)
- The role of substitutes and competitors in limiting pricing latitude
- How exchange value models can be used in sales and marketing to communicate the value of your new product to the market
Curry W. Hilton is a senior pricing analyst at Wiglaf Pricing and former economics lecturer at Elon University. At Wiglaf Pricing he serves leading companies in defining their pricing strategy and pricing organization. His primary research interest focuses on price segmentation, negotiations, and firm strategy.