Pricing and costing Midterm Lesson 3 for

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Customer Perception
Driven Pricing

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Mature Markets
• In addition, mature markets are at the
peak of their development with little to
no changes in growth.
• Example: The oil industry.

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3 Price Setting Approach to
the Market
• Exchange Value
• Economic Price Optimization
• Conjoint Analysis

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Exchange Value
• An exchange value, which is
the proportion at which a commodity
can be exchanged for other entities.
• A price (an actual selling price, or an
imputed ideal price).

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Economic Price Optimization
• Economy pricing is a type of price
optimization based on generating
revenue and profits from the volume
of goods you can sell at a lower price,
rather than attaching value to it.

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Economic Price Optimization
• It sets prices at the bare minimum to
make a small profit, but the idea is to
make the bare minimum as many times
possible by selling as much volume of
your products as possible.

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Conjoint Analysis
• It measures customers
preferences between products.
The products themselves treated
as a bundle of attributes.

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Which of the three (3) price
setting approach is the most
common used by marketers?

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Conjoint Analysis
• A statistical technique used in market
research to determine how people
value different features that make up
an individual product or service.

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Conjoint Analysis
• This way, marketers can identify which
combination of attributes is going to
perform on the market or which will be
the most sought after combination in
terms of the consumer’s point of view
before actually introducing a new
product.

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Part-Worth Utilities
• also known as attribute importance
scores and level values, or simply as
conjoint analysis utilities are numerical
scores that measure how much each
feature influences the customer’s
decision to select an alternative.

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What type of
attributes can
you identify in
mango juice?

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