|
1 minute reading

The more a product is differentiated along a dimension consumers care about, the higher price premium it can demand

The more a product is differentiated along a dimension consumers care about, the higher price premium it can demand The more a product is differentiated along a dimension consumers care about, the higher price premium it can demand
Source : Ugo Gattoni via itsnicethat
Playing to Win
From a book
Playing to Win
Font size
A
12 24 17
A
#Pricing

Differentiation between products is driven by the activities of the firm: product design, product performance, quality, branding, advertising, distribution, and so on. The more a product is differentiated along a dimension consumers care about, the higher price premium it can demand. So, Starbucks can charge $3.50 for a cappuccino, Hermès can charge $10,000 for a Birkin bag, and they can do so largely irrespective of input costs.

Example (1)

+ 15 points
Do you know an example, a fact, an evidence a personal experience which would support the theory ?


Please enter a value.
0

When you fly, everyone knows that the dimension that makes us buy our 6 dollars bottle of water is that of distribution, that of the very moment I want to drink. I want to now. And I'm dying of thirst, no matter what the price of a bottle of water in everyday life, at 35,000 feets above the ground, I am willing to pay my beveraege six times the normal price.

By SourceL | 07/12/2019 |

Comment

+ 5 points
Would you like to share an opinion on this
article ?


Please enter a value.


Please enter a value.

Comment

+ 5 points
Would you like to share an opinion on this
article ?


Please enter a value.


Please enter a value.

Interpretation

+ 15 points
Do you believe this entry can have a different reading, or that you can bring clarification to the text of the author ?


Please enter a value.

Comment

+ 5 points
Would you like to share an opinion on this
article ?


Please enter a value.


Please enter a value.
Similar articles
Categories:
Business
Author unknown via Pinterest

Focus is saying no to 1,000 good ideas.

| Approved
Categories:
Business

Stay hungry.
Stay foolish.

| Approved
Category:
Business

Every time I read a management or self-help book, I find myself saying, “That’s fine, but that wasn’t really the hard thing about the situation.” The hard thing isn’t setting a big, hairy, audacious goal. The hard thing is laying people off when you miss the big goal. The hard thing isn’t hiring great people. The hard thing is when those “great people” develop a sense of entitlement and start demanding unreasonable things. The hard thing isn’t setting up an organizational chart. The hard thing is getting people to communicate within the organization that you just designed. The hard thing isn’t dreaming big. The hard thing is waking up in the middle of the night in a cold sweat when the dream turns into a nightmare.

| Approved
Categories:
Business

The last 10% is 90% of the work.

| Approved
Categories:
Business
2 minutes reading

Just before getting on the plane home we signed deals with two Chinese factories, and officially became the first American ...

| Approved
Row:Column:
×
Row:Column:
×
Row:Column:
×
Row:Column:
×
Row:Column:
×
Row:Column:
×
Row:Column:
×
Row:Column:
×