Smarter Pricing: How to capture more value in your market

Confused by prices? That’s the intention

Where customers are able readily to compare prices, they are expected to choose the lower prices. Brands in price-sensitive markets with low switching costs, like telecommunications, attempt to obstruct these comparisons with confusion pricing. Each brand develops unique complex price structures. Each supplier can make a ‘lowest price’ claim for one or other package. For example, prices for phone calls will vary by time of day, day of week, call length and caller destination or network. Up to a threshold, calls will be included within the monthly rental payment. Six different parameters mean that the customer would need to understand precisely his or her own future usage mix to calculate which supplier ...