Scenario: Pricing policies : Note -This Question will require Research: 1- Pricing is a significant...

Scenario: Pricing policies : Note -This Question will require Research:

1- Pricing is a significant marketing tool critically discuss Apple Inc.'s pricing strategies and discuss why some companies such as Amazon with their Kindle Touch Chose to use very different pricing strategies ?

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Expert Solution

Pricing Objectives

Apple Inc.

Price Points - $400 - $800; variants on the basis of Wi-Fi, LTE, and, device's memory

iPad

Temporal version of price discrimination: Pricing strategies differ as Apple products are priced higher; Amazon Kindle does not price its products that high; the strategies thus differ

Kindle uses Tying; while Apple uses Price Skimming, and, Penetration Pricing

Kindle

Kindle - Tying

Amazon Kindle + ebooks

Kindle sold at a low price for it to be affordable; consumers purchase ebooks for the product to be useful.

Rahul Sunny answered 2 years ago

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