How to Stop Customers from Fixating on Price
Posted: 23 Apr 2010
In mature markets, heavy competition has a commoditizing effect, and customers become increasingly fixated on price. When marketers refer to “commoditization,” they typically mean diminishing differences among offerings. But it’s also a psychological state: Consumers fall into a mind-set that makes them less receptive to innovation or marketing campaigns. Paradoxically, one of the most important levers managers can use to revive consumer interest is price. The authors describe four pricing moves that can call attention to how an offering is different - and why it deserves to fetch a premium.
Keywords: pricing, product differentiation, marketing strategy, consumer behavior, commoditization, price competition
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