ABSTRACT
This chapter provides a comprehensive overview of all five fundamental value factors in their logical order. Anyone seeking to define the right price for an offering can easily apply this approach to their business. The disconnect between price and strategy can lead to wrong conclusions if corrective actions must be taken to improve a product's financial performance. The key message of Robert Hass's statement is that a buying decision is driven not only by the offering's ratio of price to performance itself but also by other factors like brand, delivery performance and service. The chapter explains why product pricing must be embedded in the overall company strategy and why this should be a priority of companies' senior executives. Market segmentation has long played an important role in the pricing process. In addition, voice of the customer studies and conjoint analysis have been very useful tools for pricing.
