Question

write a detailed summary on Personalized Pricing strategy. 300 WORDS

Answer 1

A personalized pacing strategy is based on the characteristics of a particular customer. The business organization has the sole idea about the consumer, their preferences, and actions. Different prices are offered to the customers based on their characteristics and attributes. Different customers have different pricing preferences. For example, youth consumers prefer low prices but technically advanced products, while older adults prefer to pay a reasonable price for moderately advanced products. A personalized pricing strategy is specially shaped up for the car dealership industry. Car dealers generally set a different price for the same car of different models. The dealer also assumes the willingness of the buyer to pay and tailoring price according to the individual attributes.
Companies generally use the personalized pricing strategy to grab different customers for the same service at different prices. For example- Nextflix started using the personalized pricing strategy after its downfall in 2014, where the company earned around $145 directly from the target customers. However, it could have gained 12% if it could have adopted the personalized pricing strategy. Hence, the company started providing the same services at different prices to different kinds of customers. Soon the profitability boosted after the implementation personalized pricing strategy. Thus, customized pricing strategy has a great future for setting pieces for the different target markets for the same product or service.  
The companies have started using data analytics to assume the pricing standard of target customers. The companies have set different prices for individual shoppers. Vehicle organizations are using vehicle data to analyze car performance and vehicle conditions. On the other hand, retail organizations are using a cloud-based data analytical system to maintain a personalized approach in setting up prices for different commodities. Insurance companies can use customized pricing for different driving behaviors of target customers. It is the most significant approach for segmentation marketing strategy.