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If you are a business owner who is introducing new product to the market, newly developed...

If you are a business owner who is introducing new product to the market, newly developed reading glasses that can adjust to distance as you move your head up and down, which pricing strategy will you adopt to launch this product?   

Business   Operations-Management   
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Answer #1

I will use skimming price strategy for this product. The reason behind this strategy is that since the product is new then the people who are keen to have this product will spend more to purchase this product.

I will keep the price very high in the beginning so that the people who can afford this new innovation and those who wants to project themselves differently in the society can buy the product. Again the cost of innovation will also be taken from the skimming pricing strategy. Now Later on when the product will be older then I will reduce the rice so that society at large can utilize it. By this way I can capture both the customer. On who wants to pay more for innovation and second those who want innovation at cheaper price.

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