How to Stop Customers from Fixating on Price
Marco Bertini and Luc Wathieu
Harvard Business Review
The Magazine, May 2010
At a consumer products company we’re familiar with, no one on the senior team would ever refer to the company’s products as “commodities.” Managers there know what the competition has to offer, and they know their goods are different. They can name the distinctive features and explain their value—and they can tell you how much they’ve spent on innovation to keep that edge.
The problem is, their customers don’t seem to have gotten the memo. Faced with the many options available to them on store shelves, they behave as though only one factor matters in the buying decision: price. They treat the company’s products as commodities.