These debates are often passionate because there’s no universally correct answer. The argument for maximizing profits is perhaps obvious, but it can also be good business to leave enough room on the value range to delight loyal, buzz-generating customers. Apple’s pricing strategy is a good example of this approach. Apple deliberately prices its products below its customers’ sky-high WTP (but still well above cost), generating a form of customer devotion that approaches frenzy.9 Despite paying a handsome price premium by industry standards, almost everyone leaves an Apple store feeling like a
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