10.11 Pricing: Iterate, Experiment, and Explore

As noted in the introduction to this chapter, consumers’ purchase decisions are highly idiosyncratic.  Despite the way they might be described in an Economics 101 textbook, consumers are far from the hyper-rational, calculating automatons that a classroom model might suggest them to be.  

For these reasons, it becomes very difficult to generalize about pricing.  What works for one business, in one market, in one region, may not work for someone else.  

Often, the best thing that a company can do to determine its optimal pricing decisions is to experiment.  Over time, a company’s data will help it answer very specific questions about its customers and their actions.