Chapter 10: Toward a Theory of New-Product Pricing

Chapter 10 Toward a Theory of New-Product Pricing establishes three objectives: first, when pricing a new product, determining the value provided to the customer is essential; second, a theory of new-product pricing must consider how price influences a customer’s judgment; and lastly, the value of a product changes over time. The chapter proposes that a more appropriate theory can be developed by recognizing the evolutionary process of demand and price.