How to manage customer value

Lots of companies confuse value pricing with low prices. In reality, people buy products and services not on price alone but on customer value: the relationship between costs and benefits. Although this trade-off has long been recognised as critical for marketing, businesses frequently get their price-benefit position wrong.

Even when they dont, many ignore its dynamic effect - the reactions of competitors and customers, not to mention the impact on an industrys profitability. Yet even in 1997, when the perennially important Setting value, not price, advances in market research had made this kind of dynamic value management much easier ... READ MORE

Released by McKinsey - July 2013