08 Aug Small Business Discussion and Peer Response
Using the textbook, Strayer Library, and the Bachelor of Business Administration Library Guide, analyze pricing strategies for established products and services. Next, select and explain the pricing strategy you would use for a business. Within your response, you should also identify two objectives this strategy seeks to achieve.
Be sure to respond to at least one of your classmates’ posts.
Peer Response:
Cheryl Hines
RE: Week 5 Discussion:
There are many pricing strategies. Competitive pricing which states that if your competitor raises their prices by two dollars then you raise yours by one dollar and if your competitor lowers their price by one dollar you lower yours by more than a dollar. Penetration pricing means that you start with a lower price to quickly build a customer base for that particualar product and sales. Value based pricing is a pricing cooncept that focuses only on the populous that can afford it, If the major or very popuar and expensive item cost to much for the average individual, most will turn to an item that is in their budget. There are companies that have what they consider an A product and a B product. Both products cater to each customer base the value customers and the customer that want the big brand.
I would definetly choose a value based pricing strategy. I think that everyone should be able to afford what they want or need. Each customer should have the opportunity. Major companies see value in this concept. Most have brand name products and a value based division o the same items, to cater to all their customers. I would cater to a value based custer base. They should have the same access to tech that is within their budget as everyone that can afford the big brand.
Objective: To offer products at a reasonable price, promote brand and customer loyalty and maximize profit.
Requirements: follow instructions
