lasastrain.blogg.se

Levi Strauss’ CFO indicates that they understand its customers varied needs.

Which brand promises and delivers the best value for satisfying my needs in this situation? Value is in the eye of the customer. Customer-focused segmentation should be focused on situation-based needs, not merely on price. Price segmentation is not customer-centric. For example, sites like Expedia lead to the unintended consequence of brand commoditization driven by price-focused segmentation. Price segmentation sets the stage for third-party online shopping channels that sort brands by price from lowest to highest within a set of specifications and without regard to brand differentiation. It is price management rather than brand management. But, few of them want to throw money away.”Ī price focus demeans the brand. Yet, generally, they think they know value when they see it.” He continued,” The rich, of course, are willing to spend more, often a lot more, for products that deliver quality improvements they value. Frank said in one of his Upshot columns for the New York Times, “Clearly many rich people like to display their wealth. What price-point strategies fail to take into account is the fact that all of us want to think we have purchased the best value for our particular need in our particular circumstances within the set of brands we can afford.Īs Professor Robert H. People value different things for different needs in different situations. For some of us, in a certain situation feel that a glass of Prosecco is the best value while for others, in a different situation a glass of Moet is the best value.Īll of us are value-conscious, and this includes those of us who pay super premium prices. Kia buyers feel also feel they purchased a good value. Do these brand leaders think that if we pay a premium price we are not value-conscious? Mercedes buyers believe they purchased a good value for their needs. It is an unfortunate occurrence that the word “value” is becoming synonymous with “price.” Some brands say they target their low-price “value brands” for the so-called “value-conscious” consumer.