This preview shows page 1. Sign up to view the full content.
Unformatted text preview: increase demand for the product, but at the same time it also hurts the image of the product. By lowering the price of the desk far below comparable products the penetration pricing strategy makes the high-quality image seem like a lower quality. I believe it would be smart for the manufacturer to start with a different pricing goal. Starting with a product oriented strategy would be a better fit for the manufacturers product because it will help promote the high-quality image that the manufacturer is trying for. This way as the product ages the manufacturer will be able to lower the price without being at risk of hurting its profits. By having a price skimming pricing strategy the manufacturer will also be able to produce less of the high quality desk because the increased price will make up for the decrease in demand....
View Full Document
- Fall '10