DEVELOPING PRICING STRATEGIES AND PROGRAMS

Presentation by Srujan Dasari

HOW

SHOULD A COMPANY RESPOND

TO A COMPETITORS’

PRICE-CHANGE ?

Best response varies with Situation

HOW SHOULD A FIRM RESPOND TO A COMPETITORS’ PRICE-CUT?

In Markets with HOMOGENEITY, a Firm should search for ways to ENHANCE its AUGMENTED PRODUCT

In Markets with NON-HOMOGENEITY, One needs to consider many Issues

Why did the Competitor change the price?

Does the competitor plan to make price change permanent or temporary?

What will happen to company’s market share and profit if it doesn’t respond?

What are the competitor’s and other firm’s responses likely to each possible situation?

DISCLAIMER

Created by Srujan Dasari, IIT Kharagpur,

during an internship by

Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com