Today's Revenue Management thought:-

Mind boggling……..Deriving price by looking into the consumer’s mind….. if only it was that easy & we did not have several million potential customers.

Pricing has the task of increasing the probability that a customer will decide in favor of an offer at a certain price. Pricing therefore always aims to influence decision-making behavior. Good pricing should therefore always be based on an understanding of the customer’s decision-making process.

Pricing must therefore take into account the customer's needs, preferences and subjective perception of value. Pricing should also be adjusted to the current market situation, competition and the customer's buying power. Pricing should also factor in the costs associated with producing, selling and delivering a product or service

Have a profitable week.

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