The science of how products and services are priced [Infographic]

TheScienceOfPricing_Infographic

Interesting. Very interesting.

[via Blog-Growth]

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2 comments

  1. NGayanP

    [@Naveed]

    There are some good facts here; however, it seems like a piece of work where the author aims to find research to back their conclusion, rather than researching with the honest aim of understanding how people react. Good for university, but not for informing people.

    As Naveed stated Freemium works well in certain industries; It worked for Angry Birds and Temple Run because people love to compete and the more people there are, the higher the potential of generating paying customers who want to reach the top of the leader-boards or just beat their friends.

    Freemium may fail for businesses that sell high priced products, or are perceived as high value paid services, as that may dilute the value of their propositions, and the perception the market has about their brand.

  2. Naveed

    The freemium image is over simplified I think. 1. We don’t know what the service was. 2. We don’t know the difference in the service levels. 3. Would he have gotten as many paying customers of he didn’t have the exposure from the free customers?

    The freemium model works very well and is effectively used by many companies – Evernote among many others.