Price Differentiation and Pricing Structures
Why Use Price Differentiation? What are Popular Pricing Structures?
Companies often charge different prices for the same product to differentiate groups of customers or to different individual customers. What are the benefits of this? Should you do this? I explore those questions in this video and provide many pricing structure examples. In this video, I'll:
- Discuss why your company may want to - or not want to - use price differentiation
- Explain ways companies use price differentiation
- Show how to structure products to maximize the benefits of price segmentation
- Explain price fences and why they must be used in price differentiation