Business Pricing Strategy

Want to read the rest of this paper? Join Essayworld today to view this entire essay and over 50,000 other term papers

had to design a product and a pricing strategy, a marketing strategy, which would gain them entry into the ethnocentrism American marketplace. According to Langlois, in 1971, the Big Four Japanese automakers; Honda, Nissan, Toyota and Mazda held a negligible share of the United States (U.S.) domestic automobile market, but by 1990, combined car sales of these four companies exceeded two million units in the United States, and represented 26.8% of the U.S. domestic car market (Langlois, 1996) . The success of the Japanese automakers demonstrated what can happen when a company leaves the conventional wisdom of charging whatever the traffic will bear . . . maximize profits on each unit sold and instead chose to sell more vehicles through aggressive pricing policies." (Wall Street Journal January 8, 1985) The Japanese were not ignoring profits, but rather were pouring their returns into a longer-term strategy which allowed them to gain a needed foothold in the worlds largest market ...

Get instant access to over 50,000 essays. Write better papers. Get better grades. Already a member? Login

strategy plays heavily into the perception of value, and can be a significant source of additional profits for the company. One example of pricing strategy which can be a significant source of additional profits is the private label products on the shelves at many retail grocery and drug store chains. These products compare well in quality and value to the national name brand products, but do not carry on their balance sheets expense line items such as high profile advertising campaigns, and celebrity sponsors. According to Lodish (1998) 18 to 35 percent of grocery and drug store chain stocks are made up of private label products which can be used to enhance the value image ...

Succeed in your coursework without stepping into a library. Get access to a growing library of notes, book reports, and research papers in 2 minutes or less.

CITE THIS PAGE: