Brute force or stealthy inroads? The subtleties of effective price increases

Abstract

For many companies, raising prices can result in customer defections and reduced volumes. The right strategy for increasing prices can result in increased customer satisfaction and fewer defections. Several approaches for raising prices involve changing the customer value proposition at the same time as changing the price. This makes it harder for customers to identify the changes and they are less likely to react. Finally, a close examination of lifecycle patterns in customer usage allows companies to structure their prices so that customers “grow” into a price increase over time.

Citation

Docters, R.G., Reopel, M.R., Sun, J. and Tanny, S.M. (2004), "Brute force or stealthy inroads? The subtleties of effective price increases", Journal of Business Strategy, Vol. 25 No. 3, pp. 50-54. https://doi.org/10.1108/02756660410537008