1
Q
What are the three basic principles for contemporary pricing?
A
- You must aim to price the product such that your entire target segment can afford it.
- Your price should also be one that interested customers cannot refuse.
- Your price must retain customers.
2
Q
What is a price corridor?
A
Is a tool that helps businesses find the right price for an irresistible offer.
3
Q
What are the two steps of price corridor?
A
- Identify the price corridor for your new product
- Choose a price level within your price corridor
4
Q
How is the step 1 achieved?
A
- Looking at all products that have the same resemblance as your new product
- Looking at products that have the same function as your new one, but may have a different form.
- Looking at all products that have the same objective as your new one, but may have a different form and function.
5
Q
How is the step 2 achieved?
A
Whether you choose an upper-level, mid-level, or lower-level, price depends on how much legal and resource protection you enjoy.
