In the Pricing course, you learned about value-based pricing—a model designed to capture the maximum share of your buyer's wallet.

"Will I? vs. "Which One?"

Unlike cost-based or competitor-focused pricing, value-based pricing sets prices according to what a customer is willing to pay. But how do you determine that willingness? It hinges on whether the customer is making a "Will I?" decision or a "Which One?" decision.

"Will I?" Decision: The buyer is deciding whether to purchase a product at all, without considering competitive alternatives. Example: Apple Watch, where the decision revolves around whether to own a smartwatch.

"Which One?" Decision: The buyer has already decided to make a purchase and is choosing between alternatives.Example: Buying a car, where the decision is between different vehicle makes.

Next Steps:

Identify Your Product's Decision Type: Use win/loss interviews and transcripts to determine if buyers considered alternatives.

Collaborate Across Teams: Align your PM and PMM teams. Understanding whether your product falls into the "Will I?" or "Which One?" category impacts not just pricing, but also messaging and positioning.

Leverage the Insights:

• "Will I?" Products: Emphasize the unique benefits and value. Buyers are less price-sensitive, so focus on value in use.

• "Which One?" Products: Highlight what sets your product apart. Differentiate through unique features and value propositions.

Understanding the decision-making process not only informs pricing strategies but also enhances your overall market approach.