Consumer Attitude Towards Cost Cutting And Studies Case Study Based On Market Share Analysis And Customer Ratings Essay

When it comes to pricing we always strived to provide one of the lowest prices in the market. We decreased product prices by $0.50 on each product each year to appeal to consumers. Since providing a low cost product was one of our strategic goals we did not stray from decreasing prices. Looking back, perhaps we shouldn’t have been so loyal to our strategy when we were unable to turn a profit. While a strategy is important to stick to, being a profitable company is the ultimate goal.

Low pricing eventually results in loss of customer loyalty as pricing to bottom is a risky business strategy.

Consumers have certain types of perceptions of price in correlation to the product quality and service; therefore, company should base their price on the customer’s perceived value (K&K). Some consumers are price sensitive, while others are quality or both. “The key to perceived-value pricing is to deliver more unique value than competitors and to demonstrate this to prospective buyers” (p.183). For example, Dish Network has introductory price for a year or two, then it bounces back to regular price. Also, the company offers different TV packages, which can be customized according to the station most watched or one can pick one of the package the company provides. I have been with Dish Network for more than 5 years and one thing that kept

For the company to ensures success in its operations there is need to cultivate customer loyalty and facilitate efficient supplies, differentiator linkage between operations and buyers must be put in place. This will be facilitated through some ways. To cater for customer needs the company will have to ensure it adopts a competitive pricing strategy against the existing competitors and new entrants in the market. The company has a lean pricing policy and to take advantage of its off- price apparel strategy. The customer’s loyalty has to be sustained through the low prices they enjoy

Such companies include Coca Cola Company and Pepsi. Such companies have the ability to offer their products at a lower price due to economies of scale in production. It is important for the product to cut down on overhead costs to ensure that they are able to offer the product at a lower price. Customers will be attracted to other products if the company is unable to meet their price expectations.

From the courier, it is clear that the products with the highest customer awareness have the higher market share. With that in mind, we will adjust the promotion budget for the low end products to increase our customer awareness which in turn will increase our sales if we continue to compete based on low prices. Because we are featuring our low end product, we think that this product will remain in the cash cow position, never becoming a star through an increase in market growth rate. The only way that this product will ever become a dog is if the price of the product

Another top stakeholder within Costco’s organization is its customer clientele. After careful research, the author noted several variables that contributed towards Costco’s highly-rated customer service and satisfaction ratings that speak from sales in addition to positive feedback. The author will briefly dissect this stakeholder group and display, in writing, why this group aids Costco in providing low prices on select items, its continuous service method which has proven, both financially and through praise, to be one of the more successful methods in retail, and to demonstrate why Costco

The Robustness of the Effects of Consumers’ Participation in Market Research that pointed out three different point of customer service.” The first expecting to evaluate on the service provider’s performance evaluation is enduring and lasts beyond the immediate aftermath of the service

The use of 4 P’s, on the other hand, ensures maximizing the resources of the company. When considering price, place, product, and promotion, all aspects of the product/service are considered. Both distributors and customers are emphasized. Equally important, the company’s perspective is taken into account, especially in finding cost-effective ways to make, distribute, and promote products and services. The sales philosophy, which “engages an organization to seek out customers aggressively and persuade them to consume existing offerings,” is part only of the promotion part (Morgan 1996, p.20). This sales philosophy must be combined with cost philosophy, “The only way to improve our profits is to reduce our marketing and production costs,” to safeguard the profitability of products also.

The H&M guarantees value for their low pricing. This strategy of low prices has made the company very successful in emerging markets, according to Jepeson (2014). From the research conducted H&M seems to be practicing a cost based pricing model. The two major constituents of the brand pricing is the high fashion and the lower cost. The company collaborates with renowned designers in order to offer innovative product design but manages to keep prices low through the manufacturing

The main objective of a low-cost provider is to achieve a lower overall cost than its main competitors and rivals by means of underpricing (Gamble, 93). This is also known as price advantage in order to attract customers. Companies that use this strategy will achieve high sales volumes while striving for low cost margins. For example, Wal-Mart is known to have considerable low prices that attract a broad spectrum of customers. People who shop at Wal-Mart are familiar with their “Rollback Prices” which focus on the idea of everyday low prices that are sold at a far cheaper rate than its main competitors. They are able to sustain these prices because of a successful supply chain market. Many of the products they sell are from foreign and domestic markets that focus on a lower price demand. This allows Wal-Mart to sell their products at lower prices at a high volume. Basically, they buy a huge quantity in volume in order to achieve a lower price to gain a higher profit.

Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in

A. Wal-Mart realized through third party studies and internal research that the Chinese customer were significantly more cost-sensitive than those in other countries and that there existed a strong, established culture of frequently shopping around to find the absolute lowest prices. Through these studies, Wal-Mart also realized that customer satisfaction level greatly influenced customer loyalty in China. The greatest determinant of this satisfaction was made up of perceived value. The perceived value is composed of three sub factors: (1) Product price, (2) Relative price and (3) Promotion. The other factors for customer satisfaction in descending order of its importance are Image,

Once the consumers like the product and realizes it is good quality, then they accept the product and the low pricing help the product create some buzz in the market and have some good techniques.

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).