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Power pricing: How managing price transforms the bottom line
The cost of lack of sophistication in pricing is growing day by day. The reasons for the increasing difficulty of doing a good job on pricing can be summarized into two words : interdependence and information. Interdependence comes in two forms: product and markets.  Two forms of product proliferation, one is horizontal  in the sense that all coke products are on the same inherent quality level and vertical product proliferation in the form of good better and best strategy. Market interdependence also is impacting pricing. Priceing is relatively simple when markets can be separated and a price individually determined. The second related cause of complexity is its information. Better information creating smarter, more powerful customers. The force of interrelatedness and information have created more complex price schedule.

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