Because the prices were low compared to the

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because the prices were low compared to the competitors as well as HP as a company is big enough to handle small profits, with the aim of increasing sale. The other was Psychology Pricing, basically because of the .99 technique implemented on the price tag with the move intended to lure the buyer with the perception that the laptop was even cheaper (Li, Xu, & Li, 2013). Effectiveness of the Strategy, 1. The company can remain relevant in the market because of the increased sales which in turn boost profits because of the minimum pricing. 2. Consumer perception, this is built by the fact that the customers fill that they have value for their money without any overstatements. By this, the companies brand name grows as well as it earns loyalty from its customers
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MARKETING DISCUSSION FORUM 3 The Competitor’s Response to the Pricing The tech industry is of the most competitive industries, and with such pricing strategies implemented by HP, competitors have to lower their prices or find an alternative. One of the alternatives is to increase their laptops specifications by developing unique features, or else lower their prices to compete with HP as a company (Hollensen, 2015) Reference Hollensen, S. (2015). Marketing management: A relationship approach . Pearson Education.
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MARKETING DISCUSSION FORUM 4 Li, Y., Xu, L., & Li, D. (2013). Examining relationships between the return policy, product quality, and pricing strategy in online direct selling. International Journal of Production Economics , 144 (2), 451-460.
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