“A cheap price is a shortcut to being cheated.” (Chinese proverb)
Marketing professionals believe that growing a business implies cultivating brands that inspire a deep, meaningful connection with customers. When it comes to generating revenue, however, companies often implement policies that seem intent on destroying all the hard work that goes into building a strong brand. We have already seen such instance in the course: the design of the revenue model. Now we take this paradox a couple of steps further, studying how a company’s efforts to discriminate among customers or minimise the pain of high(er) prices can go awry. Knowing that pricing decisions are effective at spurring all sorts of behaviors and communicating what a company stands for, what it truly thinks of its customers and how it wants to engage them in a relationship is an important first step to formulating counter measures. The session makes this point salient and suggests practical solutions. The broader message is that, instead of using price in a way that ends up turning customers into adversaries, companies can use it as a starting point for a collaboration that is empowering and more engaging.