3.1.2 Price Score

Each segment has a $20.00 price range. Customers prefer products–the ideal–towards the bottom of the range.

Segment price expectations correlate with the segment’s position on the Perceptual Map. High Tech customers are willing to pay higher prices than Low Tech customers.

Price Rough Cut

Sensors priced $10.00 above or below the segment guidelines will not be considered for purchase. Those products fail the price rough cut.

Sensors priced $1.00 above or below the segment guidelines lose about 10% of their customer survey score . Sensors continue to lose approximately 10% of their customer survey score for each dollar above or below the guideline, on up to $9.99, where the score is reduced by approximately 99%. At $10.00 outside the range, demand for the product is zero.

Price Fine Cut

Within each segment’s price range, price scores follow a classic economic demand curve : As price goes down, the price score goes up.