Ford Mustang: Value-Based Pricing Strategy

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Based on the latest information, the Mustang appears to be priced for value-based pricing. There are a number of different pricing strategies, each to support different strategic objectives. Some of the pricing strategies are to maximize profit, maximize revenue, to maximize unit sales, survival, status quo or to project quality leadership. This leads to strategies such as skimming, penetration pricing, cost-plus pricing, value-based pricing and psychological pricing (NetMBA, 2010). Ford has a number of different models and the pricing differs depending on the model. There are high-end Mustangs, such as the Shelby GT500, which has a base price of $59,200, but these are not high volume sellers. Essentially, the top end Mustangs are priced at skim pricing, because they have a small but dedicated market of Mustang enthusiasts who seek out these vehicles and can afford to pay for them. The base price for a low-end Mustang, however, is set differently. This model, the V6 Coupe, is priced at $22,200 as a starting price. It is expected that most prospective owners will want some sort of upgrade, to either the V6 Premium ($26,895) or the V6 Convertible ($27,200). Based on the most recent price comparisons, the 2013 V6 Coupe is priced at a level significantly below that of the Chevy Camaro ($25,280), the Dodge Challenger ($24,995) or the Hyundai Genesis ($28,750) (, 2012). When this analysis was conducted earlier in the semester, the Mustang was priced in between the
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