What is a Price Driver?

A price driver is analogous to a cost driver– it is the factor or event which drives price level or preference for a particular price structure.

Often, the primary driver of price is value as perceived by the buyer. Value is the benefit for which the buyer willing to pay.

Frequently, drivers of price can be the type of decision-making (e.g. committee versus single decision-maker) or the context of the decision, or factors such as channel power.

There may be up to four or five price drivers. Usually other candidate drivers are linked together so do not impact pricing decisions.

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