Select any one of the following starter bullet point sections. Review the important themes within the sub questions of each bullet point. The sub questions are designed to get you thinking about some of the important issues. Your response should provide a succinct synthesis of the key themes in a way that articulates a clear point, position, or conclusion supported by research. Select a different bullet point section than what your classmates have already posted so that we can engage several discussions on relevant topics. If all of the bullet points have been addressed, then you may begin to reuse the bullet points with the expectation that varied responses continue.
Perceived value of a product is directly related to its perceived quality and inversely related to its price.
Assuming that we keep the perceived quality constant, explain what would happen to the perceived value of the product if we increase its price.
Explain what will happen if we decrease its price.
Conversely, if we keep the price constant, explain what will happen to the product's perceived value if we increase its perceived quality.
Explain what will happen if we decrease its perceived quality.
As a part of the campaign for a new gourmet foods store, advertisement flyers will be sent through direct mail to high-income zip codes to solicit business from household heads. The mailers will contain information about the variety of products and services offered by the new store. Write the key marketing messages for an advertisement flyer positioning the store as a place where consumers interact with others interested in quality foods for everyday use and entertainment. In addition, select a method to measure the effectiveness of the mailer. Make reasonable assumptions.
Using your selected method, how will you measure the effectiveness of the advertisement flyer?
Why do you think your method is appropriate in the given situation? Provide detailed justification for your choice.
A free-market national economy is experiencing a recession with no apparent end in sight. Determine what two pricing objectives you would recommend for producers of goods and services in the country. Explain why you would recommend these two pricing objectives.
Explain the way pricing strategy changes over the course of the four stages of the product (category) life cycle: introduction, growth, maturity, and decline. Provide reasoning to support your answer.
Identify three internal and three external factors influencing the setting of prices. Discuss how each of these factors influences the price of a service.
Respond to your peers throughout the week. Justify your answers with examples, research, and reasoning.
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Explain the way pricing strategy changes over the course of the four stages of the product (category) life cycle: introduction, growth, maturity, and decline. Provide reasoning to support your answer.
During the introduction stage of the product life cycle, the pricing strategy typically focuses on penetration pricing. This means that the product is priced relatively low to encourage rapid adoption and gain market share. The goal is to attract customers and create awareness of the new product in the market. The emphasis is on building customer loyalty and establishing the product's value proposition.
As the product moves into the growth stage, the pricing strategy may transition to a more competitive pricing approach. With increased competition and market demand, it becomes important to align the price with the perceived value of the product. This can involve setting the price at a similar level to competitors, or even slightly higher if the product offers additional value or unique features.
In the maturity stage, the pricing strategy may shift towards price stability or even price reduction. Market saturation and intense competition often lead to price wars and price erosion. Companies may implement promotional pricing strategies, such as discounts or bundle offers, to incentivize customer retention and maintain market share.
Finally, in the decline stage, the pricing strategy may involve further price reductions to clear out remaining inventory or stimulate last-minute sales. Discounting and clearance sales become more prevalent as the product becomes less desirable or outdated in the market. At this stage, the focus is on minimizing losses and maximizing revenue from remaining customers.
The changing pricing strategies at each stage of the product life cycle are a reflection of the market dynamics, competition, and customer preferences. Adapting the pricing strategy to align with these factors is crucial for maintaining profitability and market relevance. It allows companies to capture value, attract customers, and respond to changing market conditions.
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