3. Pricing One important key factor a businessperson must take into consideration in order to run a successful business is heavily depending on whether one’s pricing strategies work properly. In order to have an effective pricing strategy and to set a reasonable price for both producers and consumers, Skarp Razor needs to deeply stick into buyers’ mind to understand what exactly customers would mostly care about the product; furthermore, accurate self-positioning allows Skarp Razor concentrate on serving its segmented customers and build its pricing structure effectively. Eventually, by adjusting prices will allow Skarp Razor to capture the opportunity to be active among the rapid changing and competitive business environment.
3.1 …show more content…
According to the psychological pricing theory, when people cannot judge the quality of a product due to lack of information and other objects to compare, price plays an extremely significant role in determining a good quality. Hence having a relatively high level price is a good way to help the company position a good quality image in consumers’ mind. However, according to Market-skimming pricing theory, instead of setting a low price for Skarp Razor to attract buyers, setting a high price would skim maximum revenues layer by layer from the segment we choose here (Generation Y) and allows Skarp Razor to reach their true customers and to make fewer but more profitable sales. Finally, along with more competitors will start to enter the market; Skarp Razor will have enough customer base and experience by that time and will protect its market share and acquire more customers by simply adjusting …show more content…
In fact, millennials pay a lot of attention to a brand image. In one of Nicole Fallon’s blog, he mentions millennials want the brand they buy reflect how they are as people. Since this generation is heavily connected to social media, it will be very effective if Skarp Razor focus on online advertising and selling through web browsers and social media applications such as Facebook, YouTube, and Twitter, etc. However, 33% of the millennials mostly rely on reading blogs, reviews before making consumptions rather than watch online commercials. Therefore, Skarps have to make sure that every sale they make and service they provide has a positive influence on consumers’ impressions and opinions about this
3.1 …show more content…
According to the psychological pricing theory, when people cannot judge the quality of a product due to lack of information and other objects to compare, price plays an extremely significant role in determining a good quality. Hence having a relatively high level price is a good way to help the company position a good quality image in consumers’ mind. However, according to Market-skimming pricing theory, instead of setting a low price for Skarp Razor to attract buyers, setting a high price would skim maximum revenues layer by layer from the segment we choose here (Generation Y) and allows Skarp Razor to reach their true customers and to make fewer but more profitable sales. Finally, along with more competitors will start to enter the market; Skarp Razor will have enough customer base and experience by that time and will protect its market share and acquire more customers by simply adjusting …show more content…
In fact, millennials pay a lot of attention to a brand image. In one of Nicole Fallon’s blog, he mentions millennials want the brand they buy reflect how they are as people. Since this generation is heavily connected to social media, it will be very effective if Skarp Razor focus on online advertising and selling through web browsers and social media applications such as Facebook, YouTube, and Twitter, etc. However, 33% of the millennials mostly rely on reading blogs, reviews before making consumptions rather than watch online commercials. Therefore, Skarps have to make sure that every sale they make and service they provide has a positive influence on consumers’ impressions and opinions about this