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.

Customers want choice. That is a fact. According to a global Nielsen survey,  63% of customers around the world want manufacturers to offer a new product.