If the price of gas went up 50 cents a gallon, how would that impact the demand for automobiles? SUVs? Hybrids?
As the product manager for Whirlpool’s line of washing machines, you are in charge of pricing new products. Your product team has developed a revolutionary new washing machine that relies on radically new technology and requires very little water to get clothes clean. This technology will likely be difficult for your competition to copy. Should you adopt a skimming or a penetration pricing strategy? Justify your answer.
For what products do you have a reference price? How does it impact your product choices?
What do you think of different prices for different segments? Do you see any dilemmas?