Here is the ‘Pricing Strategies Matrix’ with the answers overlaid. Here are the more detailed explanations.
- Burger King introduces a new range of value meals. There is a lot of price competition in the fast food market, hence the value approach.
- Nokia launch a new videophone. This is a new, innovative product that can claim a higher price. Skimming is only an option in the short-term since competition will be inevitable.
- Wall-Mart launch a new range of own-label soups. This is an economy brand.
- Cunard launch two new cruise ships. The service is high price and high quality with a premium price.
- A cable TV provider moves into a new area and needs to achieve a market share. The company uses a penetration approach to gain market share. Prices could be increased at a later date.
- Holiday Inns try to fill hotels during winter weekends. This is an example of ‘off peak’ pricing.