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What is the consumer price index?

The Consumer Price Index is an important economic metric. It measures the average change in prices paid by consumers over a period of time for a basket of goods and services. The index is calculated and published monthly by the Bureau of Labor Statistics.

Where does pricing power come from?

Pricing power comes from differentiated value and not from commodity value. See “A question of Value” and "Pricing the Differential" by Gerald Smith and Tom Nagle, published in Marketing Management in the May/June 2005. What to price? What to optimize?

Are the 4 Cs independent of each other?

The four Cs are not independent of each other. Looking at two of the Cs together can provide new insights. Value is relative to the alternatives, and in competitive situations this means the competition. What functionality is commoditized, where do you have the advantage, what does your competitor do better than you?

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