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Begin with the short summary of the history of diamonds and move towards how this commodity is priced, discuss cost-plus pricing, value based segmentation, value and it’s role in pricing strategy, discuss how value-based messages are used to reflect key product characteristics essential to pricing strategy. discuss four stages of customer buying process (origination, information gathering, selection, and fulfillment) and describe customers learning process. define the two types of diamond buyers (brand buyers and convenience buyers) give examples like Tiffanys’ compared to Zale’s. discuss three considerations (ceiling, highest allowable, and floor prices) that determine where the price window should be set for the initial price to a customer.
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