Author:

Hermann Simon

Synopsis:

Pricing, often called the "neglected P" of the marketing mix, is the most powerful driver of profit. Hermann Simon, a leading authority on pricing, explores both the art and science behind it. The book blends economic theory with practical psychological insights to show how pricing shapes the consumer journey. Simon demonstrates that price is more than a number; it communicates quality, prestige, and value. Using case studies, he explains how companies can shift from cost-plus to value-based pricing to capture the highest possible customer willingness to pay. Marketers will find strategies for managing price wars, launching new products, and offering discounts without harming brand equity. The book also examines pricing psychology, including effective price endings and product bundling to enhance perceived value. It offers a strategic framework for optimizing revenue and maintaining a strong market position, whether selling software or consumer goods.