March 28, 2012

NYTimes Article: Knowing Cost, the Customer Sets the Price

Ok, give this article from the NYTimes a read, if you are a pricing maven (click here for the article), thanks to @caseycarey for mentioning it.


Again, pay attention to the individual featured in the article.

  • P.T. Vineburgh, male, age 33.
This is a Jennifer/Jasmine aged person, closer to Jasmine ... and the game is played differently in this psychographic range.

When you hear people say that they miss coupons ... well, that's Judy.

The issue isn't pricing ... the issue is stimulating response within the Judy / Jennifer / Jasmine framework.  Judy likes sales and coupons.  Jennifer likes doing her own research for finding the best deal.  Jasmine demands the lowest price, period, she can't afford higher prices.

It's a lot harder to have a one-pricing-fits-all strategy when you have three different customer psychographics with three very different needs.

Your thoughts?

2 comments:

  1. Anonymous10:30 AM

    Kevin, great blog. I looked up Robyn on Facebook (she's the only one with that unique spelling), and she appears to be a cross to be Jasmine/Jennifer. So perhaps some retailers are "known" for their couponing and no one pays full price.

    On a separate subject, I would characterize myself as a Jennifer/Judy, closer to Jennifer in behavior, and the coupons frustrate me when there are so many exclusions based on brands. I'd be interested in your thoughts/observations on coupons with highly-desired brand names omitted from sales.

    Thanks again for a great blog.

    ReplyDelete
  2. The retailer isn't giving you the coupon because the retailer loves you, the retailer is giving you the coupon because the retailer is having a problem selling non-highly-desired brand names, the retailer has an inventory problem that must be solved or some poor person in inventory management gets fired.

    ReplyDelete

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