Consumer Confidence : Product Lifecycle Pricing

1542 Words Feb 8th, 2015 7 Pages
Consumer Confidence in CSR Brands Product lifecycle pricing provides the firm a systematic way of understanding the true price of a product, including externalities, in their product creation process. In traditionally, the company only considers the costs of the end product. For instance, a company creating a product with multiple components sourced from various manufacturers looks at quality and price of the components to manage the costs of the final end product. Product lifecycle pricing encourages a company to consider the full cost of the subcomponents that make up the final product. Full cost includes not only quality, but a quantitative price attached to each step from the impact to the earth when extracting the materials for the product, the energy used to build the product, the living wage and working conditions of the people who manufactured the product, the impact to the environment in the community where the product was manufactured, and the disposal of the product at the end of its product life (Chandler, & Werther, 2014). If a CSR promoting company does not fully evaluate and understand the lifecycle, starting from the very beginning of the product creation steps, they run the risk of exposing their brand, and reducing brand equity, due to negative press in the event that poor CSR practices occurs anywhere along the lifecycle. Additionally, CSR positively affects supplier behaviors in the business-to-business (B2B) marketplace (Pai, Lai, Chiu, & Yang,…
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