Respond to a peer whose product is different and compare the influences Why are some influences more important for some products than for others Peer's Response I would select Microsoft for now, considering the company has to launch a new Laptop Here are the major influences on the pricing of the new product that is laptop Consumer Demand The demand of the customersgreatly affects product pricing, with this the company will be able todetermine how much the customer is willing to pay for the product and finalizethe price in accordance with it Costs and competition Marketing, productioncost and distribution of the laptops significantly impact its price Microsoftshould take into account the cost of materials, labor, research and developmentand cost of advertising when setting the price At the same time, Microsoftmust take into account how their own product compares to competitors, how itwill be perceived in the market as pricing of the similar laptops offered bytheir competitors such as Lenovo, Sony, and HP will have a great role indetermining its price Brand Image Microsoft has a strong brand image,and pricing of the products must align with the image in order to maintain thereputation and value of brand Some suggestions for price setting are mentioned below Considering the Microsoft's image in market, it should set the price of the new product at a premium level, which would remain consistent with its brand image The customer base will be willing topay premium for the latest product launched in the market as the company offershigh quality products with super user experience I would say the company must consider competition and adjust the price accordingly In case the products' price isset up higher than its competitor's ones, it may reduce potential customersfrom buying the new product Therefore, price should be competitive enough forattracting new customers In addition to this, customer demand could be takenas advantage by the company by offering various pricing tiers for the newlaptop, for instance, premium model with additional features can be set at ahigher price, and offering base model a lower price for all This strategywould appeal many and attract wide range

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Respond to a peer whose product is different and compare the influences. Why are some influences more important for some products than for others? Peer's

Respond to a peer whose product is different and compare the influences. Why are some influences more important for some products than for others?

Peer's Response :

I would select Microsoft for now, considering the company has to launch a new Laptop. Here are the major influences on the pricing of the new product that is laptop:

Consumer Demand: The demand of the customersgreatly affects product pricing, with this the company will be able todetermine how much the customer is willing to pay for the product and finalizethe price in accordance with it.
Costs and competition: Marketing, productioncost and distribution of the laptops significantly impact its price. Microsoftshould take into account the cost of materials, labor, research and developmentand cost of advertising when setting the price. At the same time, Microsoftmust take into account how their own product compares to competitors, how itwill be perceived in the market as pricing of the similar laptops offered bytheir competitors such as Lenovo, Sony, and HP will have a great role indetermining its price.
Brand Image: Microsoft has a strong brand image,and pricing of the products must align with the image in order to maintain thereputation and value of brand.

Some suggestions for price setting are mentioned below:

Considering the Microsoft's image in market, it should set the price of the new product at a premium level, which would remain consistent with its brand image.The customer base will be willing topay premium for the latest product launched in the market as the company offershigh-quality products with super user experience.

I would say the company must consider competition and adjust the price accordingly.

In case the products' price isset up higher than its competitor's ones, it may reduce potential customersfrom buying the new product. Therefore, price should be competitive enough forattracting new customers. In addition to this, customer demand could be takenas advantage by the company by offering various pricing tiers for the newlaptop, for instance, premium model with additional features can be set at ahigher price, and offering base model a lower price for all. This strategywould appeal many and attract wide range.