Standard approaches to price decisions are normally illustrated as step‐by‐step developments that try to group pricing issues loosely into some format. These current approaches do not emphasize the interaction of consumer characteristics with the competitive environment of each market. Describes a modified version of the Tellis Price Strategy Matrix to enable coordinated market issues and company strategies by directing emphasis on pricing issues and techniques that are appropriate and effective, given the consumers′ (or segment′s) as well as the company′s objectives, as constrained by the competitive nature of the product′s market. By using this type of matrix as a guide, product managers can quickly evaluate the appropriate issues of concern for a given pricing decision and then progress toward a pricing decision with more confidence.
Journal of Product & Brand Management – Emerald Publishing
Published: Jun 1, 1994
Keywords: Competition; Customer profiling; Decision making; Pricing policy; Pricing strategy; Product positioning