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Factors That Determine The Price Of A Product
Introduction
This paper will focus on the mobile phone Industry and also analyse and explain the factors that determine its price. Most importantly, it will also assess how important industrial forces will effect the pricing of this popular product as well as its external factors. ...
Once costing is complete, the manufacturer then must determine a reasonable list price that will achieve the companys desired volume and profits goals. This price needs to also consider the competition and the market.
Other considerations that come into play when determining price include:
Previous / current / projected profits
New market penetration
Increasing market share
Meeting or excluding competition
Stage product is in, in its product life cycle
External economic trends
The price of mobile phones to customers is generally affected by the demand and the supply of mobile phones and the network services that operate them. ...
The price of mobile phones is also determined by the state of the market and the competitors within that market. ... Due to the fact that this market is an oligopoly, each seller can manipulate prices and other market factors to their advantage.
There are many characteristics and factors of a mobile telephone that will determine the price:
Does the offering provide tangible vs. ... Uniqueness supports a higher price if the offering has credibility. ... If you have a limited production capacity, you should price high enough to insure that you dont create more demand than you can satisfy. ...
When determining a price for a mobile telephone, the seller must take into consideration the buyer’s perceived value of the product. ... However, the seller will also have a perceived value of the product and they will set a price that they believe is good value. Therefore both parties need to agree on a suitable and justified price for a mobile phone. Sellers also should know that setting the price so low could result in that the consumers perceive that a product of this type should cost more, and therefore they believe the product must not be any good.
Approximate Word count = 1626
Approximate Pages = 6.5
(250 words per page double spaced)
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