Pricing Analysis

Analytical Essay # 29480

Business
Business > Marketing

Pricing Analysis

This paper summarizes the pricing assessment of a product or service at three different point-of-purchase locations.

748 words () | 3 sources | MLA | 2003 United States

Paper Summary:

For this assignment, the writer chose to check the price of Michael Jackson's "Invincible" CD, released in 2001, online at www.BestBuy.com and www.Ebay.com and at a local Wal-Mart store. The writer begins this paper by stating the price found for the product at each point of purchase. Then, it discusses the pricing rationale for each point of purchase location in turn in light of the price set for this product. Finally, the writer concludes this essay by summarizing the above noted information.

From the Paper:

"I found the CD for $14.99 at www.BestBuy.com including free shipping. At www.Ebay.com I found the CD (used) at an in progress auction at www.Ebay.com for $0.99 with $2.90 for shipping / handling and insurance. Finally, at my local Wal-Mart the CD was available for $13.99, plus all the stores CD's were 20% off for a holiday sale. At www.BestBuy.com the company is employing the premium pricing strategy (Kotler, 715). Because they are willing to include shipping for free the item is not any more expensive to the consumer than it would be if they simply went to the local store to purchase it outright or if they ordered it online and then went to a local store to pick it up."