Value pricing is the process of holding prices steady or cutting them while improving product benefits. The marketer must look at the trade-off between benefits and price from the customer's viewpoint. Instead of setting prices according to internal concerns, you set them to reflect your customers' perceptions of value. To prosper in today's high-pressure environment, consumer marketers are using value pricing to give their products an edge. Another approach to value pricing is mass customization.
Organizational customers are also concerned with value.
E. Customer-Driven Pricing and Market Segmentation 1. Customer-driven pricing uses market segmentation to identify customer groups that will respond to products priced to meet their needs. When you target more than one segment, prices must be adjusted accordingly. You can also tailor a product to individual customer needs and set the price accordingly. How the Pricing Process Operates 1.