For this activity:
You will need access to The Internet and to write down your answers in your Mahara e-portfolio
You have been given the job of pricing two new products as follows:
Product A - Budget hotel room - Target- Families (Lower middle to low income)
Product B - Luxury hotel room- Target- Business People (High to middle income)
Task 1:
Think about Product A and Product B, how important will the price be to the target customers? Write a short paragraph to describe and justify your answer for each product.
Task 2:
Which pricing strategy may best fit the following products?
New model of a digital camera
Famous Brand handling
Toilet Paper
Telephone Service Fee
Complete the following table by adding the products next to the appropriate strategy. As in the first task, describe and justify your answer for each product.
Pricing Strategy | Products |
Economy Pricing |
|
Price Penetration |
|
Price Skimming |
|
Premium Pricing |
|