Pricing Management
Name:
Southern New Hampshire University
QSO-630-11246-M01 Supply Chain Management
Dr. Bruce Laviolette
September 28, 2025
, Pricing Management
Within pricing management, there are numerous strategies to employ when a company is
deciding on the prices of their products. There are approximately twenty-seven different
strategies; none are a one-size-fits-all approach (Yantsan, 2018). As with many aspects of
business, sometimes a hybrid approach is best. A good first step in choosing a pricing
management strategy is utilize segmentation, this technique is “used to identify and satisfy the
needs of specific groups of customers with similar requirements within a market (Linton, 2012).”
Segmentation can be either price or product based. Price segmentation is offering the same
product at different price points for different segment groups, and product segmentation is
offering different versions of a product to different groups (Linton, 2012). The book industry is
no different than other industries in the way that no one-size-fits-all approach will work for
product pricing. Barnes & Noble (B&N) is unique in its strategies, an example being the CEO
giving more power to the individual stores to make product and merchandising decisions based
on their customer preferences, rather than a corporate influenced direction (Smith, 2025). This
would be an example of product-based segmentation, because each store can offer different
books based on the needs or wants of their customer base.
Customer Categories
Customer segmentation within pricing management is going to mirror the types of segmentation
used in marketing. There are five main categories used to group customers when deciding on a
target market. These categories are listed below:
1. Geographic: dividing customers into geographic units (Tynan & Drayton, 1987).
Name:
Southern New Hampshire University
QSO-630-11246-M01 Supply Chain Management
Dr. Bruce Laviolette
September 28, 2025
, Pricing Management
Within pricing management, there are numerous strategies to employ when a company is
deciding on the prices of their products. There are approximately twenty-seven different
strategies; none are a one-size-fits-all approach (Yantsan, 2018). As with many aspects of
business, sometimes a hybrid approach is best. A good first step in choosing a pricing
management strategy is utilize segmentation, this technique is “used to identify and satisfy the
needs of specific groups of customers with similar requirements within a market (Linton, 2012).”
Segmentation can be either price or product based. Price segmentation is offering the same
product at different price points for different segment groups, and product segmentation is
offering different versions of a product to different groups (Linton, 2012). The book industry is
no different than other industries in the way that no one-size-fits-all approach will work for
product pricing. Barnes & Noble (B&N) is unique in its strategies, an example being the CEO
giving more power to the individual stores to make product and merchandising decisions based
on their customer preferences, rather than a corporate influenced direction (Smith, 2025). This
would be an example of product-based segmentation, because each store can offer different
books based on the needs or wants of their customer base.
Customer Categories
Customer segmentation within pricing management is going to mirror the types of segmentation
used in marketing. There are five main categories used to group customers when deciding on a
target market. These categories are listed below:
1. Geographic: dividing customers into geographic units (Tynan & Drayton, 1987).
