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Several pricing methods together for close to optimal price discrimination. 1. Scientific experiment to determine the price. With enough customers, it's possi

Several pricing methods together for close to optimal price discrimination. 1. Scientific experiment to determine the price. With enough customers, it's possible to determine optimal price level using scientific method. Vary the price and see how it affects demand and discover what customers are willing to pay. 2. Divide customers into segments, and apply scientific pricing into segments. Segmenting can be heuristic based on devices used and behaviour. 3. Personalization comes last. It's segmentation in the finest level. If user be identified, his social networks analyzed etc, it's possible to model his behaviour and determine users price sensitivity and how the user perceives value. Triggering purchase decision can be personalized. For some people showing generated review or rating helps to make a decision, for some you need to show purity values (images of people in white clothes in the sun), for some you must indicate that they are able to "win" over the seller. Access to the mobile gaming data with in app purchases is massive leg up in personal profiling. Data from mobile gaming can be used to experiment and model personal behaviour and personality.

hnhg 9y ago
You need scale for all of these, right? How would you start with an entirely new product or service with no previous presence in the market? I guess you could look at similar products but if you're targeting a new market entirely, you might have no assurances that your assumptions are correct.
- Nokinside 9y ago
  You revert back to more traditional pricing methods. Pricing was advanced field even before the internet. Everyone doing it should first study pricing at least few days to get a feel and ideas and to know what kind of pricing methods to use and how to determine the initial price and how to change it.
  - hnhg 9y ago
    What are they, out of interest? Is there a good primer anywhere online?

hnhg 9y ago

You need scale for all of these, right? How would you start with an entirely new product or service with no previous presence in the market? I guess you could look at similar products but if you're targeting a new market entirely, you might have no assurances that your assumptions are correct.

Nokinside 9y ago
You revert back to more traditional pricing methods. Pricing was advanced field even before the internet. Everyone doing it should first study pricing at least few days to get a feel and ideas and to know what kind of pricing methods to use and how to determine the initial price and how to change it.
- hnhg 9y ago
  What are they, out of interest? Is there a good primer anywhere online?