Value-Based Pricing

“In the end, the customer will decide whether a product’s price is right. Pricing decisions, like other marketing mix decisions, must start with customer value. When customers buy a product, they exchange something of value (the price) in order to get something of value (the benefits of having or using the product). Effective, customer-oriented pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures this value. (Armstrong & Kotler – Marketing 9e Ch.9 pg.260)”

The value of Kettle V. is going to be built on the fact of its hard availability and demand for it hopefully built on the 6-8 week ad campaign. And once people try Kettle V. and taste how great it is, the value Kettle V. will hopefully go up from there. I do not want to under value Kettle V. that is why I aggressively price a bottle of Kettle V. for $35.99 showing that it is more than just a regular vodka drink.