This post is by Tomasz Tunguz from Tomasz Tunguz
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The traditional theoretical price demand curve is often drawn like this. The chart makes two points: there is some relationship between price and demand / revenue opportunity, and customer segments underpin that relationship. Each segment demands different products to satisfy different needs and presents a different revenue/profit opportunity. Even if the details are very hazy, price demand curves are useful tools to inform product strategy and prioritization. To make PD curves useful requires marketing research.