It’s necessary to understand why a price war is occurring—or may occur. But it’s also critical to recognize where to look for resources in battle. It’s important to carefully analyze your customers, company, competitors, and other players within and outside the industry that may have an interest in how the price war plays out. A [...]
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Using Selective Pricing Actions
Employing complex options such as multiple-part pricing, quantity discounts, time-of-use pricing, bundling, and so on lets price warriors selectively cut rates for only those segments of the population that are under competitive threat. One common—and classic—tactic is to change customers’ choices, or reframe the price war in the minds of customers. McDonald’s did it successfully [...]