Definition of Consumer-focused Pricing
A pricing approach where the vendor chooses a price based on what consumers will pay based on the execution of the company from their point of view.
Description of Consumer-focused Pricing
In order to price optimally, you have to figure out the best way to wedge yourself into the market, that way your prices echo the value diversity amongst the various kinds of customers. Therefore, you have to make sure that you truly understand your consumers and everything that they value.
You would make the most profit by determining the most every customer is willing to pay and then pricing your item or service that amount.
Advantages of Consumer-focused Pricing
This pricing approach can improve your customer loyalty if they view your item or service as one of quality. They also tend to become more certain purchasing your items since they know what to expect from it. There’s a better sense of trust between the company and the consumer.
Disadvantages of Consumer-focused Pricing
Typically, the greater the price and the greater the value idea only caters to a small portion of consumers, which may make others feel as if they’re not included. Your business also won’t be scalable as you grow since some of your staff members will lack the experience and skill set to perform well.