Value is so important and it impacts how a company prices a product and how we buy

Value is so important and it impacts how a company prices a product and how we buy

#7 Cost vs Value – a perception (Professor)

Value is so important and it impacts how a company prices a product and how we buy. Here are some thoughts of mine below.

People will almost always have a price point in their mind as to what a product should cost.  They may be wrong, but they still have a price idea.  If a product is not in the price range, the person may not buy the product because it is seen as too expensive or too cheap.   I will use a fairly simple example to make the point.
I go to buy a toothbrush.  If a toothbrush costs only one dollar, I won’t buy it because it has to be “cheap.”  However, if I see a toothbrush for $20, I won’t buy that one either.  “Who would pay $20 for a toothbrush?”

Companies need to understand the general perception of price ranges from consumers.  Consumers can be persuaded that your price is okay, but you need to know if there may be resistance.

Thoughts?

#8 Customer Relationships (Professor)

Lots and lots of really good comments on customer relationships.  That is what it is all about.

 On one side, the business wants to create a relationship with a customer for a better chance to keep the customer around.  On the other side, the customer has to feel some connection to the product or service.  They have to see themselves with or using the product.  This is very true for local or regional businesses, where referrals and repeat customers are a must.  However, for large corporations, customer still need to feel some connection.  It is about image.  I can see myself driving that car.   Think Pepsi or Coke – the customer likes to have fun with friends.  The customer can feel a connection with the product.

No matter how much a company wants to create a relationship with me, if I don’t feel a connection, the chances of a sustained relationship is limited

……………….Answer preview………….

Question 7. For managers, competition is about knowing their goods are different and their ability to name distinctive features as well as explaining their difference of goods. Theirs is to point out the distinctive features explaining their value and this forms their basis for explaining the cost of the innovation………………………

APA

276 words

Get instant access to the full solution from yourhomeworksolutions by clicking the purchase button below