Pricing Over a Product's Lifecycle
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How should pricing strategy fluctuate over the product/service life cycle? Can you give an example.
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Solution Summary
This is a discussion of pricing strategy over a product's lifecycle.
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Products tend to go through four stages:
1. Market introduction stage
At this stage the product production costs are high and the sales volume low. With no/little competition this is the time that the price of the product will be the highest during its lifecycle so that the costs of development can be recovered. The XBOX by Microsoft is a prime example of this. Microsoft sank millions ...
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