IDEA 14 I have written many times about the dangers of applying intuition, in the absence of data in marketing and business more generally. There is perhaps no area of marketing, or indeed business, that is addressed more intuitively than price. This is despite that fact that there are few areas of marketing that can […]

IDEA 14 I have written many times about the dangers of applying intuition, in the absence of data in marketing and business more generally. There is perhaps no area of marketing, or indeed business, that is addressed more intuitively than price. This is despite that fact that there are few areas of marketing that can be more accurately tested and tracked than price. How often do businesses assume, with little or know concrete evidence that the lowest price will win (almost irrespective of the product or market), that consumers buy on the basis of price (rather than price being just one factor considered), or that the solution to increased sales is lower costs (even when price is just one factor impacting on consumer decision making. Price is clearly important. It impacts on directly volumes, margins and profitability. As will be discussed in this article, price also impacts profitability through its…