Theories behind Pricing Strategy As Applied By Apple Company Research Paper

Theories behind Pricing Strategy As Applied By Apple Company - Research Paper Example Regardless of whether or not a company’s product is the best in the market in terms of quality, the company must set a price that convinces the ordinary consumer of the quality of the product. This implies that the price of the product must match the quality of the product sold. In setting a price for a product, a company must take into consideration the nature of the market in which it operates. This includes analyzing the prices charged by competitors in the market. This is because regardless of the quality of the product that a company intends to introduce in the market, consumers will always compare the prices of all the companies in the industry and match them with the quality in arriving at a decision on which company to buy from. In this regard, marketing experts argue that for a company to attract customers, it must ensure that the prices charged are not too high or too low compared to those of its competitors (Griffin, 2013). Secondly, an effective marketing strategy that a company adopts must take into consideration the cost. As such, in setting a price, a company must first calculate all the cost incurred in the development of the product and subtract it from the revenue sources. This helps in determining the minimum profit margin that a company needs in order to break even. The price at which a company will break even should always be the list price at which the product may be priced (Landsburg, 2011). Thirdly, a good pricing strategy must take into consideration the consumers and the demand for the product to be introduced in the market in order to calculate the maximum price that the consumers may be willing and ready to pay for the product. Once this has been determined, the next step is to use the profit margin goal and competitor information to choose the best price to sell the product (Griffin, 2013). Apple’s Application of Pricing Theory Product prices are determined in three different ways namely cost-based, competition-based, or demand-based. In cost-based pricing, the price of a product is fixed based entirely on the cost of production and the desired profit without factoring in the demand aspects. In competitive-based pricing, the prices are set based on the competitor prices for a similar product. In demand-based prices, the prices are fixed based on the price rage that consumers are willing and ready to pay (Griffin, 2013). Apple is one of the electronic companies that have succeeded in the electronic industry. The company is known for quality phones such as the iPhones and other electronic products. Many people have often wondered how Apple has managed to achieve so much successes despite the stiff competition it faces from other giant companies such as Samsung, Nokia, and LG. An analysis shows that apart from the quality of the products it sells, the company has also succeeded due to the pricing strategy that it adopts. In this regard, the analysis shows that Apple adopts a cost-based pricing strat egy, which is purely based on its cost of production and the desired profit margin. According to the company, its prices are not fixed with the demand aspects in mind. Rather, they are fixed with the profit margin that it intends to generate in mind. This explains why the prices of Apple products are relatively more expensive than those of its compactors. Apple is a company that

Child observation Essay Example | Topics and Well Written Essays - 4500 words - 1

Child observation - Essay Example Trish said â€Å"Hello!† and continued playing with blocks. Nate took some of her blocks from the tray and he also began to build something. Both children did not speak to each other and were very busy with what they were doing. I think Trish wanted to hold on longer to her mother because she is aware that they will be apart for the day. She was trying to assert her independence when she said â€Å"No!† which I believe is a powerful word for toddlers because it shows they can speak up for themselves. As her mother was walking away, I wonder what was running through Trish’s head. Is she afraid she will not see her mother anymore? Does she want to go with her mother? When the caregiver took her, it did not take long for Trish to stop crying as she was attracted to the toys on the shelf. I thought toddlers get distracted easily and they are fascinated with objects that stimulate their thinking. I think this is because they are in Piaget’s Pre-Operational Stage of Development when they begin playing with toys as symbols for something else. I believe she sees the blocks as tools to give life to her imagination. . I learned from Piaget that especially for very young children, they need concrete materials to help them learn better I think Trish felt comfortable with Nate because she did not mind him sitting beside her and taking some pieces of her blocks. Trish is still learning verbal skills and at her age, it is still very limited. I think if she had more verbal skills, she would engage in a conversation with Nate. I felt sorry for Trish when she clung to her mother. I just wanted to pick her up, comfort her and assure her that her mother will be back soon. As a mother myself, I feel her mother’s pain in leaving her at the centre but also understand that she needs to work. Trish was playing by herself at the play stove. The caregiver squatted near her and asked her what she was doing. Trish said