How does pricing strategy change over the product life cycle
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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.
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This solution explains how pricing strategy changes over the course of the four stages of the product (category) life cycle: introduction, growth, maturity, and decline.
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Basically, our pricing strategy is going to follow suit with the characteristics of each stage in the life cycle. During the introductory stage, prices are typically higher than in any other stage. If marketing for the product has been successful, there will be a significant amount of demand due to consumer interest and a high pricing model will be successful. In this stage, there is a desire for a high profit margin and with new products, the potential is definitely there. By using a high pricing model, the company is able to begin recouping many of the costs that have been ...
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