Pricing is about Consumer Perception
pricing is all about consumer perception.
This is one of the main conclusions in speech by Martin Payne of Through
the Loop at the Marketing Week conference on New Pricing Strategies for
Generating Greater Profit Margins in London today.
a wide-ranging analysis of the issue of differential pricing, Martin
argues that it is well accepted by the consumer in areas such as
utilities and transport peak-time and off-peak pricing. However, he
noted that while off-peak pricing for railway travel, for example, may
be used to increase off-peak utilisation, it not only penalises
"loyal" consumers but also discourages the use of public
transport for traveling to work.
of the key issues is transparency of pricing and it has become
increasingly difficult for marketers to charge varying prices for what
be seen as the same product or service. There are a number of factors
that have contributed to this including the impact of extensive press
coverage of "rip-off" Britain.
provided three potential scenarios for the way in which differential
pricing could be applied in the future. These reflect the changing
nature of the consumer/marketer relationship and the availability of new
tools that can help to implement marketing strategies on an individual
consumer communication is at the heart of a successful differential
pricing strategy with the marketer able to communicate clear consumer
benefits of such as strategy.
copy of the presentation is able for download in the Knowledge area of
the Through the Loop Web site.
the Loop Consulting Limited is an independent research-based marketing
consultancy. Through the Loop analyses key marketing and branding issues
that affect companies today in a chaotic business environment.
further information, please contact: Through the Loop Consulting Ltd.
Tel: 020 8334 6300/Fax: 020 8940 1447