n.
The practice of charging different prices to different consumers for the same product, based on what that product is worth to each consumer.
Example Citation:
What exactly is yield management? Essentially, it's value-based pricing. A product's worth generally varies among different groups of people — business travelers versus vacation travelers, avid baseball fans versus those just looking for something to do on a Tuesday night. By characterizing a group whose members value a product similarly, but differently from other groups, a company can generally establish pricing mechanisms tailored to each customer group's values.
— Warren H. Lieberman, "A Revolution is Brewing In Pricing," Los Angeles Times, June 6, 1990
Earliest Citation:
What is the rationale for our pricing strategy? The pricing of services is a nebulous area. Cost-based pricing is often difficult to determine, and there are few formulas for effective value-based pricing.
— Dan Thomas, "Strategy Is Different in Service Businesses," The Harvard Business Review, July 1978
Related Words:
Category:
New words. 2013.