How have the companies been successful in charging high prices to the brand’s consumers, despite the low costs of manufacturing? How is customer information used as a part of the pricing strategy?

Unit 5: Pricing and Sales Promotion

Topics:
Defining customer value
Different bases for setting price
Pricing based on customer value
The pros and cons of sales promotion

Learning Objectives:
By the end of this Unit, you will be able to:
1. Estimating customer value as part of pricing strategy
2. Integrating information about customer value into the pricing decision
3. Analyze differences in pricing strategies given the marketplace
4. Examine ethical issues related to pricing certain types of products

Tasks:
Peer-assess Unit 4 Written Assignment
Read through the Learning Guide and the Reading Assignment
Complete the Discussion Assignment by posting in the Discussion Forum
Respond to three of your fellow classmates’ posts in the Discussion Forum
Complete and submit the Written Assignment
Complete and submit the Portfolio Assignment
Begin working on your Group Activity

Give two examples of brands where manufacturing costs are well below the selling price. With that in mind provide answers to the below questions;

1. How have the companies been successful in charging high prices to the brand’s consumers, despite the low costs of manufacturing?

2. How is customer information used as a part of the pricing strategy?