Horizontal chaining refers to the coordination of prices between different products in the same category or range. Rather than setting prices independently for each product. Horizontal chaining involves establishing a coherent relationship. In particular, between prices to maximize sales and profitability.
One major benefit of horizontal chaining is the optimization of processes and resources. By sharing best practices and expertise, companies can reduce duplication of effort and improve operational performance. This can lead to cost savings and increased competitiveness. Horizontal chaining creates a pricing balance between products and optimizes the perception of value for customers. It also encourages balanced purchasing decisions across the range.
