Pricing the Differential
Marketing Management
May/June 2005

Abstract:
In the early 1980's, two very different approaches to modeling customer value emerged in management practice. These two models make substantially different assumptions about customer behavior and have different implications for how to set price for a differentiated product. Both, however, are commonly citied in marketing literature and used by practitioners and consultants, as if the choice between them were merely one of convenience. But since only one can be right, the practical implications of picking the wrong one can be very costly.

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