Final Project: Price

“Recent economic events have caused a fundamental shift in consumer attitudes toward price and quality. In response, many companies have changed their pricing approaches to bring them into line with changing economic conditions and consumer price perceptions. More and more, marketers have adopted good-value pricing strategies—offering just the right combination of quality and good service at a fair price.” (Marketing: An Introduction Armstrong/Kotler Chapter 9 pg. 277) Offering a good-value pricing communicates to our customers that our pricing represents a fair estimate of the value our product provides. The services as well as the benefits from Cherry Poppers are grand but we must not compensate this by raising our prices. We want to maintain a fair and just price on Cherry Poppers in order to create a clear and honest relationship with the consumer. “Value-based pricing doesn’t mean simply charging what customers want to pay or setting low prices to meet the competition. Instead, many companies adopt value-added pricing strategies. Rather than cutting prices to match competitors, they attach value-added features and services to differentiate their offers and thus support higher prices.” (Marketing: An Introduction Armstrong/Kotler Chapter 9 pg. 278) After Cherry Poppers has been successfully introduced into the market and has seen continuous growth and is up to the point of the decline of the Product Life Cycle, it can adapt a value-based pricing. Up to this point our product might have a steady consumer base and we can take the liberty of pricing Cherry Poppers based on its value, services, and benefits it brings to the consumer. It might be a risky decision but tedious market research will be made before beginning with this new pricing strategy.