Know-How Exchange : Student Questions

You need to understand your customers' needs and values in order to answer the question. Many times it's not a question of "good-better-best" as much as "different-different-different."

Procter & Gamble sells many different laundry detergents, for example, and they are not sold on a good-better-best platform. They deliver different benefits -- whiteness, color-safety, grease removal, overall clean, brightness, ease of use, etc.

It depends on how you segment your market. In general, good-better-best is not the most effective strategy because it's too hard to make clear what the differences are and why people should want to pay a premium price.

In the overwhelming majority of cases, consumers PREFER to pay a premium price for perfomance that's perceived to be superior on a meaningful benefit. That doesn't leave much room for the "good" product.

Good-better-best is often a sign of lazy marketers who think the world is driven by pricing and that everything is a commodity.