Cost Plus Pricing Strategy Of Verizon

You have a very insightful post. In my opinion, consumers heavily weigh in on value and costs and therefore it helps to increase loyalty amongst the consumers and the business. Likewise, I had Verizon Wireless a while ago and I thoroughly enjoyed their service but my main reasoning behind switching was they were extremely higher than their competitors. Despite the price and the additional costs for the data plans I felt was a tad bit too much however their service worked just about any and everywhere. So, it was a hard decision for me to change. Furthermore, when people essentially have a good deal going they don't want to bring about changes to it.

Likewise, I know the main thing I looked for in my next cell phone carrier was that it …show more content…
Moreover, I guess like me many customers viewed the additional $30 per line as extensive. Additionally, I believe that customer loyalty is a big thing amongst Verizon. You can see this based on your statement in your post that Verizon decided to be customer friendly and drop the price by a penny. This showed that they wanted to find a way to retain customers even by the slightest drop in costs. Consumers are always shopping around for the greatest bargain and you are absolutely right that they want to save as much as possible. Generally, when prices are too high in one place consumers look around for the next best thing or cheapest thing hoping to gain the same quality and value they once received. Personally, when I decided to leave Verizon Wireless it was purely based on the amount of money I spent going over in usage with our data …show more content…
They had to ensure they gave the customers something all the while maintaining profit for the business. In addition, I believe the customers that remained are very loyal to the service, value, and reputation Verizon has. Moreover, consumers want to save by any means necessary. Mainly, if consumers are not getting what they need with the business in which they conduct business with them they tend to look elsewhere at other competitors for their needs. However, a lot ties into loyalty, customer service, reputation,and costs as to why some consumers will not deviate from what they know. Further, many sophisticated businesses today have simply abandoned cost-plus pricing and are engulfed in ways in which to enhance, improve, and implement the proper and best estimation and forecasting techniques to create more accurate knowledge pertaining to marginal revenue and marginal costs (Thomas & Maurice,