ABSTRACT
Just 17 percent of companies apply the value-based pricing model (Liozu et al. 2011), and many of them do so only very late in the stage-gate process of developing a product. An even smaller percentage understand that value is defined by the customer, who not only considers the value of the offering itself but also is consciously or unconsciously driven by other values such as service, product delivery, and company brand. Knowing that there exists a wide variety of buying preferences across different customer segments and global cultures makes it even more challenging for companies to set the right price point. A strong company strategy considers all of these variables and defines them well before a voice of the customer (VOC) study is run and a product concept is created that is later to be embedded in the overall go-to-market approach.
