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Innovation and Pricing
Look at the way online music Web sites changed the way music is purchased; it is an excellent example of how pricing schemes can be changed to meet new realities. Personal music players have become very popular, even though MP3s had been around for years prior to the release of personal music players. People bought music on CDs and paid a great deal for two songs they liked as well as several of other tracks considered fillers. That is when online music Web sites began selling single songs. This changed the industry price metric from CD to song in a time when music sales were declining.
Part 1: Researching Value Creation
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Part 2: Examples of Segmentation Pricing
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