Background Note | HBS Case Collection | September 2010 (Revised August 2011)

Pricing, Profits, and Customer Value

by Frank V. Cespedes, Benson P. Shapiro and Elliot B. Ross


This note discusses how some firms (start-ups and established companies) maximize customer value and profits via their pricing processes. It is aimed at companies that compete on the basis of performance initiatives rather than absolute cost advantages and low price. It is suitable for use in courses or modules in pricing, entrepreneurial management, strategy, or marketing.

Keywords: Customer Focus and Relationships; Customer Value and Value Chain; Cost; Price; Profit; Performance Effectiveness; Sales; Competitive Strategy;


Cespedes, Frank V., Benson P. Shapiro, and Elliot B. Ross. "Pricing, Profits, and Customer Value." Harvard Business School Background Note 811-016, September 2010. (Revised August 2011.)