Good-value pricing is a strategy that offers the right combination of quality and good service at a fair price. This pricing has involved redesigning existing brands to offer more quality for a given price or the same quality for less.
‘In technical terms, "good value pricing" refers to any pricing strategy that tries to split value creation somewhat evenly between a firm and its customers. This is in contrast to raising prices as high as consumers will pay or pushing them as low as the company can afford. ‘
It is a strategy for pricing attempting to give customers a preferable combination of benefits and features at a fair price point. The value equation is Good-value pricing’s main concept. It states that value is generated when a consumer can buy something more worthy to them than the paid price. For a company, value is profitability.
Generally, according to the daily conversation between marketers, this pricing strategy refers to a combination of product and pricing offering robust features at an affordable price. Mainly, good-value pricing is applied for less-expensive products. For instance, less expensive versions of renowned, brand products.
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