iPhone - Pricing Strategy and Distribution Channels
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I'm working on a project about the iPhone. Please help me with the following:
1) Evaluate the pricing strategy of the product (iPhone).
2) Identify and evaluate the distribution channels employed to distribute the product in question (iPhone). What types of channels are used? List all the channel members and describe their functions.
3) Evaluate the channel performance.
Thank you.
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1) Evaluate the pricing strategy of the product (iPhone).
When a new iPhone comes out it is priced high. There are a couple of reasons for this. First, iPhone/Apple is using what is called skimming strategy. The idea behind this is that the product is priced higher than normal to bring in profit to help to cut down on the research and development costs that it took to make the product (prior to distribution). Secondly, iPhone/Apple is using prestige pricing. The idea behind this is that the company prices the product high to increase the perception that it is high quality (if it were only $23.99, people would not think it was worth much). ...
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