Note that the concept of price more usefully represents a customer-oriented perspective taken by marketers, rather than only "What we charge the customer." Thus, an effective pricing strategy necessarily takes into account barriers to purchase, i.e., sacrifices required to obtain a product or service, as well as the prospect that company circumstances and objectives may differ.
Choose a product and explain the pricing strategy for this product.
What do you think are its objectives?
What barriers to purchase, including, but not limited to its cost, do you expect its potential customers to experience?
In your judgment, is the strategy effective or not based on the objectives that you identified? Explain. What other approaches would you recommend in setting a pricing strategy for this product?
There are a number of different pricing strategies adopted by companies. One pricing strategy is known as good-value pricing. Due to The Great Recession in 2008 and 2009, there has been a change in consumer perceptions of price and quality. The goal of good-value pricing is to bring pricing to a point where it matches the economy, and is conducive to consumer wants. Good-value pricing offers the right amount of quality and good service, at a reasonable price. For example, 24-hour Snap Fitness expanded the number of its clubs in recent years, and its revenues have gone up 100%. Compare this to Bally's Total Fitness, which has filed for bankruptcy more than once.
24-hour Snap Fitness ...
This solution discusses price and a customer-oriented perspective. Answered in 461 words. Three sources are cited.