In: Operations Management
Answers should be unique and should be a copy
Please provide your responses for the following pricing strategy scenarios as practiced in corporate world. Make sure your analysis is well grounded in theories and concepts related to pricing decision making. (150 to 200 words each)
--The Subway sandwich chain was not fully satisfied with the initial performance of its line of healthful fast foods, which were more expensive than alternatives offered by McDonald's and other competitors. But the company was able to boost sales by obtaining an American Heart Association endorsement for its products. Explain this move in terms of perceived value (PV).
--Traditional newspapers have lost millions of subscribers for free news websites. Instead of providing its own content at no charge, the New York Times and Company erected a pay wall-in other words, readers must pay to access most of its newspaper's stories. Explain this issue as a price customization strategy.
--Many consumers are willing to pay a significantly higher price for Perdue chicken for no-name supermarket poultry. This is a testament to the company's success in differentiating its product as being of higher quality than generic brands. Which general price indicators of price sensitivity are illustrated by Perdue's ability to command a high price?
Subway healthful range :
The wellbeing nourishment product offering was evaluated over the contenders costs prompting value touchy clients deciding to go with lower-estimated items at McDonald's and others. The support from a referred to and affirmed wellbeing organisaton, for example, AMA gave an underwriting that clients could unmistakably observe and this helped raise the apparent estimation of the items - on the off chance that the AMA embraces these, at that point they should undoubtedly be useful for the heart. Advertising for these items presently changed to incorporate a progressively noticeable worth that the items would bring taking them from being simply by and large useful for wellbeing to unquestionably useful for your heart. This expansion in the apparent estimation of the items guaranteed that more clients currently wouldn't fret paying a higher/premium cost for similar items in this way boosting deals.
NY times online newspaper :
Value customisation is an approach to make a benefit by fulfilling clients' needs. This technique has been embraced by NY times by offering different estimating alternatives for their items to their client base - which incorporates clients who esteem dependable reporting over free news sites (which probably won't be altogether precise or honest) and who currently need their news accessible on the web. There are different alternatives to look over, for example, digital+print, understudy rates, online substance just which are intended to speak to more client gatherings, the understudy rates particularly is made as an approach to tempt a more value delicate segment of the market that could transform into potential long haul clients. There is likewise a starting rate for a year at the more cost delicate non-understudy gathering to evaluate the administration at first. By altering the item estimating for different client types, NY times has figured out how to engage a more extensive client base that is currently prone to discover in any event one valuing choice that suits their prerequisites.
Perdue chicken vs. no-name poultry:
In each industry there are probably going to be some no-name organizations that can under-value their marked rivals. While these can at first pull in a bigger area of a value delicate client base, purchasers could change to a greater expense elective on the off chance that they think it offers higher caliber. Brands like Perdue advertise themselves as separated by quality, worrying to the clients that they esteem quality and this extra exertion at giving better quality items is the reason the more significant expense is advocated. Marking and brand acknowledgment likewise go far to decreasing clients' value affectability. Conventional or no-brand items are seen as prone to be of second rate quality and are not viewed as an equivalent substitute for marked items which are probably going to guarantee quality guidelines as an approach to safeguard their image. As there are no changing expenses in going from purchasing no-name to Perdue, this can additionally play into Perdue's kindness.
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