Microeconomics Assignment

Maxis are focussing on aggressive pricing strategies

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(UKEssays, 2015). Maxis are focussing on aggressive pricing strategies to compete with other service providers. Apart from that, maxis also has the different price depending on their target market. For the students under Youth Club service, they can enjoy sending SMS only for 1sen per SMS. They also can enjoy free calls to any maxis numbers from 6 pm to 6 am.For the target market like line users, the Dubliners who register their name under mainliners only need to pay RM 30 per month compare to RM 80 which is the actual rate for line users. Maxis offers the cheapest broadband services which only need to pay RM48 for 1.5GB. Another widely used pricing strategy by Maxis in its broadband on mobile services is the psychological pricing or price ending which refers to the consumer perceptions of retail prices (Pandey, 2007). Customers are highly price sensitive and easy to switch brand. It also means that customer will not stay with Maxis if other brand could provide lower price and better or similar value so Maxis have to control the price market. As the table above demonstrates, the company has used digits such as 58, 78 and 88 to make people feel that the price seems to be cheaper and also the number 8 is a lucky number for the consumers with a Chinese traditional culture background.
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Maxis Pricing Strategy 3 PENETRATION PRICING STRATEGY Penetration pricing is where price will be set very low to gain market share in a fast way and the price will be gaining back when the market is mature. Maxis promotion is through the promoter help to push up the market share. They also sponsor to the badminton association of Malaysia to gain more brand awareness (UKEssays, 2015). They will increase customer rewards or provide good services to existing customer, this is how they capture larger market share and make their customer royal (Fadhila, 2013). Maxis has come out with a new prepaid market which the strategy is to offer more to customer at no charge at all to attract the customer. Maxis also launched the new hotlink plan which claims that is the first prepaid plan in Malaysia that offers free basic internet access. The new hotlink plan has also offers high-speed internet at RM 1 a day or RM 30 a month for 1GB of data which the other company can’t provide (B.K. Sidhu, 2013). When the market is mature Maxis is convincing their customer to change to their postpaid plan by using the MaxisOne Plan a plan that with up to 50GB and unlimited call, RM98 with 20GB, RM 128 with 30GB, RM 158 with 40GB and RM 188 with 50GB per month and all comes with unlimited call. You can also share line with your family or friends each MaxisONE share line comes with 5GB all-day data and 5GB 4G weekend data with unlimited calls & SMS to all networks (Maxis Bnd, 2017). This is the penetration pricing strategy they using. PRICE LEADER AND BUNDLE STRATEGY Even that the product strategy is very important, pricing strategy of the product also very important for the new smartphone that Maxis will produce. As above there had
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Maxis Pricing Strategy 4 mentioned that smartphone will produce to fulfill the different level needs, Maxis also have to price the smart phone according to the market that the smartphone have to face. Maxis can
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