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Bikash Dash
PRICE
High Medium Low
B. Space
B1-Mileage overall (km/lt)
B2-Displacement (cc)
B3-Power (PS@rpm)
B4-Torque
B5-Transmission type
When a company changes its price following questions arises in the mind
of competitor-
Competitors at High value may wait to see whether this change in price is
temporary or permanent. Its main objective is to penetrate in the market.
Now to maintain its market share it would obviously have to add few
more features.
Or it may change its strategy.
Competitors at Super value may also wait to see the result of this change
and if the strategy of our company goes well they can increase their price
too
For Over Charging, False Economy and Rip-off there would not be any
option other than to increase the quality by adding more features and
space or to decrease the price (which they would rarely do).
Now for Good value and Economy it would be the golden opportunity to
enhance the quality of their product and charge a higher price as they
already have the reach to lower middle class family.
For Over Charging and Rip-off they would definitely face a threat in their
market share exempting it from their brand loyal customer.
Super value, Good value and False Economy strategy holders would face
the real heat of this price reduction and have to compete with adopting
some new strategy
A large number of people can go for our product leaving the Economy
one and help us to increase our market share.
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