Explore BrainMass

Appropriate Pricing Methods

Compare and contrast two pricing methods and explain why you think they would be similar or different. What is the appropriate pricing method and why for branded products such as a Media Distributor (e.g. Netflix) and Aspirin.

© BrainMass Inc. brainmass.com August 19, 2018, 7:06 am ad1c9bdddf

Solution Preview

Aspirin and Netflix are currently both pricing their products based on market oriented pricing. The companies are setting their prices based upon analysis and research of the market place, determining how their competition is pricing their products, and responding with a similar strategy.

Netflix has offered different price strategies in the past. At one point, Netflix was involved in penetration pricing, in which the company was setting the price low in an effort to gain more customers. The company was relatively new, and interested in competing against cable companies and ...

Solution Summary

THis solution compare and contrasts two pricing methods and explains the similarities and differences. It recommends the most appropriate for Netflix and aspirin. Includes reference