n.
The practice of charging different prices to different consumers for the same product, based on what that product is worth to each consumer.
Example Citation:
What exactly is yield management? Essentially, it's value-based pricing. A product's worth generally varies among different groups of people—business travelers versus vacation travelers, avid baseball fans versus those just looking for something to do on a Tuesday night. By characterizing a group whose members value a product similarly, but differently from other groups, a company can generally establish pricing mechanisms tailored to each customer group's values.
—Warren H. Lieberman, "A Revolution is Brewing In Pricing," Los Angeles Times, June 6, 1990
—Warren H. Lieberman, "A Revolution is Brewing In Pricing," Los Angeles Times, June 6, 1990
Earliest Citation:
What is the rationale for our pricing strategy? The pricing of services is a nebulous area. Cost-based pricing is often difficult to determine, and there are few formulas for effective value-based pricing.
—Dan Thomas, "Strategy Is Different in Service Businesses," The Harvard Business Review, July 1978
—Dan Thomas, "Strategy Is Different in Service Businesses," The Harvard Business Review, July 1978
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