Linking experience, product life cycle, and learning curves: Calculating the perceived value price range

Abstract Previous articles illustrated how the business-to-business marketing manager can establish, based upon sensitivity of demand and costs, the ceiling and floor of the perceived value price range. The range of the perceived value price was narrowed by the application of make-or-buy analysis, value analysis, vendor analysis, and benchmarking. This article illustrates the business-to-business marketing manager's utilization of the linkage between the experience, product life cycle, and learning curves for calculating the customer's perceived value price range of the vendor's market offering.

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