Once you have finished reviewing the background materials, think carefully about the following situations and write a 4- to 5-page paper discussing what pricing strategy you would recommend in each of the situations. For each recommendation, make sure to explain your reasoning and to cite the information sources for your recommendation.
1. A company has developed a new 4K 3-D television with outstanding displays. The company has a patent on a new technology that doesn’t require glasses to see the 3-D effect and has a display far better than those of any competitors 3-D televisions. The company still has to compete with other television manufacturers, but because of the patent and superior technology it is likely to have a large advantage in the 3-D television market for at least a year or two.
2. A brand-new company has developed a shampoo that is comparable to other major brands in quality. The company has developed a new manufacturing technology that over a period of time should be able to produce shampoo at a cheaper cost than any competitor. The cost of the new manufacturing equipment was high, but once the equipment is paid off, it should be very cheap to produce each bottle of shampoo.
3. You have just opened up a new electronics shop and Apple will be releasing its latest iPhone in a few days. You are confident that once customers come into your shop they will be impressed with your large selection and knowledgeable and friendly sales staff and will become loyal customers. However, given the nearby location of Best Buy and other popular electronics shops it will be a challenge to get customers into your shop. So the first big pricing decision you have to make is what to charge for iPhones