Discount the Parts or the Whole?

September 2013 Pricing 1 Comment

When selling things that go together, should the company offer discounts on the individual parts or the whole shebang? Sourav Ray, Charles A. Wood, and Paul R. Messinger examined these questions across 650,000 daily price listings and through customer and manager surveys in a recent Journal of Marketing article. Their results have broad price-management implications.


“You can’t ‘manage’ a crowd – or a community – through transactional exchanges or economic incentives. You need something stronger: shared purpose.” Nilofer Merchant, “When TED Lost Control of Its Crowd”, HBR, April 2013, p 82.

  1. Game-changing entrepreneurs co-create a future with that mutually benefits the co-creators.
  2. Game-changing entrepreneurs set goals based upon the means that they develop.
  3. Game-changing entrepreneurs limit losses to ensure their ability to engage the next game cycle.
  4. Game-changing entrepreneurs share with committed partners to increase their support.
  5. Game-changing entrepreneurs transform the unexpected into new opportunities.
  6. Game-changing entrepreneurs practice effectual logic over predictive logic.