How to Stop Customers from Fixating on Price

Posted: 23 Apr 2010  

Marco Bertini

ESADE Business School

Luc Wathieu

Georgetown University McDonough School of Business

Abstract

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

Suggested Citation

Bertini, Marco and Wathieu, Luc, How to Stop Customers from Fixating on Price. Harvard Business Review, Vol. 88, No. 5, 2010. Available at SSRN: https://ssrn.com/abstract=1594096

Marco Bertini (Contact Author)

ESADE Business School ( email )

Avinguda de la Torre Blanca, 59
Sant Cugat del Vallès, 08172
Spain

Luc Wathieu

Georgetown University McDonough School of Business ( email )

3700 O Street, NW
Washington, DC 20057
United States

Paper statistics

Abstract Views
2,414