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

Pricing, Profits, and Customer Value

By: Frank V. Cespedes, Benson P. Shapiro and Elliot B. Ross
  • Format:Print
  • | Pages:17
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Abstract

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

Citation

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.)
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About The Authors

Frank V. Cespedes

Entrepreneurial Management
→More Publications

Benson P. Shapiro

→More Publications

More from the Authors

    • June 2025
    • Faculty Research

    TagHive: Edtech Pricing and Distributor Decisions

    By: Isamar Troncoso, Frank V. Cespedes and Stacy Straaberg
    • March–April 2025
    • European Business Review

    Getting Value from Digital Technologies

    By: Frank Cespedes and Georg Krentzel
    • March 27, 2025
    • Harvard Business Review (website)

    How One Company Used AI to Broaden Its Customer Base

    By: Sunil Gupta and Frank V. Cespedes
More from the Authors
  • TagHive: Edtech Pricing and Distributor Decisions By: Isamar Troncoso, Frank V. Cespedes and Stacy Straaberg
  • Getting Value from Digital Technologies By: Frank Cespedes and Georg Krentzel
  • How One Company Used AI to Broaden Its Customer Base By: Sunil Gupta and Frank V. Cespedes
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