What do you think of different prices for different segments? Do you see any dilemmas?

Expert Solution

Consider the pricing dilemma of 'Maruti Udyog Limited'

Since 1985, 'Maruti Udyog Limited' has been one of the known passenger car segment in India. It was known as one of the largest selling car model in India. Huge volume of vehicles were sold and high revenue was earned by this company. For few months it performed quite well but later Alto another MS product came into existence and began eating the share. Though the price of Alto was a bit higher than Maruti Udyog, its sales boosted effecting the sales of Maruti Udyog.

Another dilemma is that consumers accept higher offline than online prices.Consumers tend to switch their behavior from buying offline to now buying online which leads to competition because both online and offline retailers price and profit declines when such behavior occurs.This dilemma of online and offline prices depends on the market segment because some market segments respond less negatively to higher offline prices.For unplanned purchases consumes accept offline price.

Rahul Sunny answered 6 months ago

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