Exploring Price Segmentation

Today we take another question from a BSI reader like you...

Laura, a Marketer in Montreal asks:

'What are some disadvantages of price segmentation?'

Laura, thanks for asking. Generally, I am an enthusiastic supporter of price segmentation. Done thoughtfully, it will result in additional revenues and profits. The trick is to segment the prices based upon real consumer need segments. The only conceivable downside is if the price segmentation is designed in such a way so as to encourage and enable price down trading. But this can be largely avoided if the price segmentation scheme is well designed.

I share more on Price Segmentation here.

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