Good, Better, Best Approach of Pricing
One of the classic examples of Good-Better-Best is “Your Choice Pricing,” which targets customers with varying economic status. G-B-B indeed can assist in the delivery of enhanced “Value Exchange,” which is applied by almost all companies. It fits not only the “new high-spending customers but also price-conscious customers. Enhancing value exchange routine is connected to its unique yet applicable implementations, which are ordinary. Its offensive, defensive, and behavioral approaches draw consumer psychology that makes choices using G-B-B in what product they should consume in addition to other benefits it brings in such as exploiting Goldilocks outcomes (Mohammed,2018). G-B-B impact value exchange as companies learn what the consumers need by focusing on experience.
Price discrimination fits in the good-better-best approach, especially when incorporating the Direct-Indirect technique. Price discrimination, for instance, is a selling technique that charges customers different prices in similar services or goods depending on the perspective of the customer. Based on the bargaining powers, customers, depending on their economic means, tend to pay for a similar product at different prices (Smith, 2011). Moreover, based on the initiated attributes, the sets of discriminations are connected to the direct, indirect consumption.
Other than price discrimination concerns in G-B-B, sometimes, understanding various options when incorporating Good-Better-Best pricing strategy can be difficult, especially when sparking measures involving direct-indirect options. Besides that, it can be frustrating at times to implement dynamic pricing. To get the right algorithm while pricing in addition to other elements such as surges detection, modeling demands, and cluster products. It is, therefore, essential to review strategic options while implementing G-B-B to help the company think and spark new and better plans.
References
Mohammed, R. (2018). The Good-Better-Best Approach To Pricing. Harvard Business Review.; Https://Hbr.Org/2018/09/The-Good-Better-Best-Approach-To-Pricing
Smith, T. J. (2011). Enhanced “Value Exchange,”