Lots Of Effort Goes Into Creating And Pricing Products

Lots Of Effort Goes Into Creating And Pricing Products That Satisfy Cu

Lots of effort goes into creating and pricing products that satisfy customers. Part of that process includes developing a brand mark and deciding on pricing. Both buyers and sellers benefit from branding. Companies take time to develop a brand that can be recognized by consumers. 1. Click the link (Links to an external site.) and take the quiz to see how well you recognize some national and global brands. Read through section about pricing strategies in your textbook. Think of an example for each of the following and state the specific type of product in that type of strategy. 2. Skimming Price Strategy - Name a company and specific product that fits this category. 3. Penetration Strategy - Name a company and specific product that fits this category. 4. Everyday Low Pricing (EDLP) -Name a company and specific product that fits this category. 5. High-low Pricing Strategy -Name a company and specific product that fits this category. 6. Psychological Pricing -Name a company and specific product that fits this category. For your Post: Number your post 1-6. For #1, based on your quiz score, state whether or not you are a person who recognizes and knows brand marks. For #2-#6, list an example of a company that fits the pricing strategy and the type of product. All you need to put next to each number is the product that fits that pricing strategy and the type of product. Example: 6. Psychological Pricing Strategy - Jr. Bacon Cheeseburger from Wendy's uses this pricing strategy because the sandwich is priced at $1.99.

Paper For Above instruction

Recognition of brand marks plays a crucial role in consumer behavior and marketing strategies. Based on my quiz score, I recognize and am familiar with many brand marks, which influences my purchasing decisions. Recognizing brands often signifies trust, quality, and familiarity, which can expedite the decision-making process and impact brand loyalty.

1. Skimming Price Strategy

A prime example of the skimming pricing strategy is Apple’s iPhone. When launching new models, Apple typically sets a high initial price to maximize revenue from early adopters who are willing to pay a premium for the latest technology. This approach targets consumers who perceive the product as innovative and desirable. The high price also helps establish a perception of quality and exclusivity. Over time, Apple gradually reduces prices to appeal to more price-sensitive customers, aligning with the typical lifecycle of skimming strategies.

2. Penetration Strategy

Netflix exemplifies the penetration pricing strategy. When Netflix entered the streaming market, it offered low subscription rates to attract customers quickly and gain market share. The low introductory prices made streaming services accessible to a broad audience, encouraging rapid adoption. This strategy was effective in establishing Netflix as a dominant player in the industry. As market penetration increased, Netflix gradually increased its prices but continued to offer competitive rates that maintained its large subscriber base.

3. Everyday Low Pricing (EDLP)

Walmart is a quintessential example of a company employing the EDLP strategy. Walmart consistently offers everyday low prices across a wide range of products, which encourages customer loyalty and simplifies the shopping experience. This approach minimizes the need for promotions and sales events, providing customers with confidence that they are receiving competitive prices at all times. The EDLP strategy aligns with Walmart’s goal of being a cost leader in retailing and appeals to budget-conscious consumers.

4. High-low Pricing Strategy

Target utilizes a high-low pricing strategy. The retailer often sets higher regular prices for products but runs frequent sales, discounts, and promotional events to attract customers seeking bargains. For instance, a designer clothing line may be priced higher during regular retail periods but offered at significant discounts during sales events. This strategy attracts both price-sensitive shoppers looking for deals and customers willing to pay full price for convenience and immediacy.

5. Psychological Pricing

Wendy’s uses psychological pricing effectively, such as pricing items like the Jr. Bacon Cheeseburger at $1.99. The strategy relies on the consumer's perception that prices just below a round number seem more attractive and affordable. This type of pricing can create a sense of value and encourage impulse purchases, as consumers often associate prices ending in .99 with good deals. Psychological pricing influences consumer behavior by shaping perceptions of affordability and value.

References

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