Branding Strategy Insider helps marketing oriented leaders and professionals like you build strong brands. BSI readers know, we regularly answer questions from marketers everywhere. Today we hear from Laura, a VP of Marketing in Montreal, Canada who has this question about pricing.
What are some disadvantages of price segmentation?
Laura, thanks for asking. Generally, we are enthusiastic supporters of price segmentation. Done thoughtfully, it will result in additional revenues and profits. The trick is to segment the prices based upon real consumer need segments. The only conceivable downside is if the price segmentation is designed in such a way so as to encourage and enable price down trading. But this can be largely avoided if the price segmentation scheme is well designed.
Laura, see here for more on Price Segmentation.
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