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Disruptive innovation

Pricing Disruptive Innovations - market-following or value-based pricing?

Pricing Disruptive Innovations - market-following or value-based pricing?

Our recent research on how people price innovations found different pricing methods for sustaining versus disruptive innovators. Sustaining innovators tend to use value-based pricing. Disruptive innovators are more likely to price relative to the market alternative. We explore why this might be using the Clayton Christensen model of disruptive innovation.

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