Quiz 20 :
In personal computers industries two companies namely, Dell and Samsung are competing in the market. Samsung launched the series of laptops that Dell was already producing in the market and that too at a very low cost and more stylish features, which led the company Dell to redefine their laptops. They also introduced various series giving competition to the laptops of Samsung but could not compete in the market and thus Samsung captured the market of laptops within a very short span of time. The customer perception in this case changes as the same thing that Dell was offering at double price is now available in less price that too with a very good brand.
Dynamic pricing is based on the following elements. They are as under: • When playing teams are positioned as Potential as each other making the game worth watching. • Season at which they play. • Day of the week in which the event of game takes place and • Involvement of fans and spectators. Dynamic price arrived at based on the above facts will enable the team to judge the Price elasticity of demand for a particular game. Analysis of statistics gathered on each game played will provide the information to set ticket prices in future.
The importance of the pricing decisions can be explained with the followings points: • Marketing mix: The 4 P's of marketing are directly related to the revenue generation. Thus the pricing decisions have to be considered so that the company covers the cost and earn profit as well. • Competition: There might be many competitors in the market that offer similar kind of product and the prices of the products are very competitive, thus keeping a very high or low price would adversely affect the market for the product. Hence the pricing decisions are very important. • Economy: The pricing decisions have to be in accordance with the economic conditions of the market. The present state of the economy is important for the pricing decision, because company has to operate in this economy itself and contribute.