Pricing: Understanding and Capturing Customer Value

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to stay the course with the brand. "This is a business that we not only want to keep but that we like and feel can win," says P&G$\text{'}$s chief financial officer. But future success hinges on whether Gillette can find the right pricing strategy in a rapidly changing market. ${?}^{15}$

Questions for Discussion

$10-16$ Based on the concept of customer value$-$based pricing, explain Gillette's rise to market dominance.

$10-17$ Historically, did Gillette employ good$-$value pricing or value$-$added pricing? Explain.

$10-18$ Based on those same concepts of value$-$based pricing, explain how Gillette's pricing strategy stopped working.

$10-19$ What can Gillette do to improve its position in the market?