Pricing Strategy
1.the product itself: the cost of producing plus your expecting profit
2.similar products, the rival firms: What are their prices? What are your product’s competitive advantages? In what aspect does your product superior to others? This can add extra value to your product.
3.target customer: Whether they are wealthy or not? Can they afford the price?
Ex: How to ensure that price levels for new products are set appropriately?
○1 The first problem is who your target customers are. Their income, occupation, preference.
○2 Do market research to make sure whether your target customers can afford the price level. There are mainly four ways of doing market research: survey, telephone interview, observation and questionnaire.
○3 Test your product in a small region. Find out how it sells, get the feedbacks of the customers. Decide whether to make any adjustment.
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