Pricing for New Products

2013 ◽  
pp. 56-74
Keyword(s):  
New Product Development ◽  
New Products ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Product Innovations ◽  
Product Pricing ◽  
Pricing Process ◽  
Product Scope ◽  
Market Needs ◽  
Market Strategies

Pricing strategies specify market needs that may be served by different price offerings. The pricing strategies of the company are duly related to market strategies that eventually come to dominate both the overall strategy and the spirit of the company. Pricing strategies deal with matters such as number and diversity of products, product innovations, product scope, and product design. The implementation of pricing strategies requires cooperation among different groups including finance, research and development, the corporate staff, and marketing. This chapter guides managers as to how to manage the concept pricing process for new product development effectively by the customer centric companies through mapping the consumer perceptions about their needs and expected products. In this chapter, the author describes how companies get customer centric pricing strategy, product pricing, and tactical moves in a way that help the firms to get the competitive advantage and build profits in the future.

scholarly journals The Analysis of Blocking Behavior and Pricing: The Case of Airbnb

2020 ◽  
pp. 1-28
Author(s):  
Yifeng Peng
Keyword(s):  
Empirical Analysis ◽  
Rapid Growth ◽  
Profit Maximization ◽  
Sharing Economy ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Product Pricing ◽  
Starting Point ◽  
The Future ◽  
Resources Sharing

Over the years, as people's lives have improved, our need for transportation and accommodation has increased, driving the rapid growth of the sharing economy. Some well-known network sharing platforms, such as Uber, Drip and Airbnb, provide a large number of convenient options for users with transactional needs, make more use of idle tourism, accommodation and other resources. Sharing economy platforms continue to improve the content and format of their products, but at the same time, the future of sharing platforms and the difficulty of competition is a concern as more platform companies become involved and prices become more transparent. Under this circumstance, optimizing product pricing has become an urgent need for many sharing economy platforms. In this paper, we take Airbnb as the starting point and conduct an empirical analysis of the blocking behavior of homeowners based on proprietary data to explore the factors that affect their product supply. We find that price, number of beds, and listing type all have a significant impact on blocking houses. After that, we conducted further research on price factors and developed a model aiming at profit maximization to obtain the best pricing range for the region and provide suggestions for pricing strategies. Keywords: Sharing Economy, Blocking behavior, Pricing Strategy, Airbnb

Pricing Strategy Dynamic Simulation Modelling within the High-Tech Sector

2011 ◽  
Vol 495 ◽  
pp. 167-170 ◽  
Author(s):  
Marina C. Terzi ◽  
Damianos P. Sakas ◽  
Ioannis Seimenis
Keyword(s):  
New Product Development ◽  
New Product ◽  
Simulation Modelling ◽  
Pricing Strategy ◽  
High Tech ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
High Tech Sector ◽  
Optimal Pricing Strategy ◽  
Dynamic Simulation Modelling

New Product Development (NPD) in the high-tech sector is a rapid paced concept that requires constant efforts and great market awareness. Pricing has received little attention from companies, even if systematic pricing monitoring may lead to serious conclusions regarding the proper allocation of resources and the segmentation of the marketplace. The purpose of the present study is to develop the concept of pricing strategies simulation modelling for the development of new high-tech products. The Pricing Simulation Model successfully represents the process that companies should carefully consider so as to employ the optimal pricing strategy.

scholarly journals The Contribution of Absorptive Capacities to New Innovative Product Development Performance: A Conceptual Framework

2021 ◽  
Vol 2 (1) ◽  
pp. 73
Author(s):  
Gogor Arif Handiwibowo ◽  
Reny Nadlifatin ◽  
Gita Widi Bhawika ◽  
Lissa Rosdiana Noer
Keyword(s):  
Product Development ◽  
Conceptual Framework ◽  
New Product Development ◽  
Absorptive Capacity ◽  
New Products ◽  
New Product ◽  
Product Innovations ◽  
Absorptive Capacities ◽  
Assimilation Capacity ◽  
The Relationship

The wave of Covid-19 has forced the industry to transform so that the products produced can remain competitive in the market. Old products in the period before Covid-19 certainly no longer have the same competitive performance as today, so the industry is required to be able to develop new product innovations that can excel in the market. To be able to produce innovative new products, the industry requires sufficient knowledge. The ability of industries to be able to acquire and implement knowledge is called absorptive capacity. In various previous studies, absorptive capacity has four aspects including acquisition capacity, assimilation capacity, transformation capacity and exploitation capacity. In this article the conceptual framework for the relationship between aspects of absorptive capacity and the performance of new products is presented. We hypothesize that there are interesting correlations between aspects of absorptive capacity and new product development performance.

Dynamics in Developing Pricing Strategies

2012 ◽  
pp. 118-142
Keyword(s):  
Decision Making ◽  
Real Time ◽  
Systems Thinking ◽  
Supply And Demand ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Consumer Decision Making ◽  
Business Markets ◽  
Product Pricing ◽  
Responsive Element

The most responsive element in the marketing functions is considered to be the pricing, which drives consumer decision making. Prices respond to supply and demand pressures in real time or near-real time. In this chapter, how systems thinking can be applied to develop right pricing strategy is discussed. Product pricing and tactical moves that help stabilizing the business and build its performance in the future among competitors have also been emphasized in the chapter. Also examined in the chapter is how many companies serving business markets believe that practicing value-based pricing is changing. The benefits of value based pricing approach are revealed in improved relations with customers that often lead to longer-term, more profitable relationships. It is argued here that pricing is a creative exercise, and companies should stay focused on profits. Further discussion provides guidelines for creating effective base prices using systems thinking approaches and enhancing profitability of firms.

scholarly journals Competence measurement of production enterprises in product innovations for technological and marketing strategies

2021 ◽  
Vol 43 ◽  
pp. 114-134
Author(s):  
Ireneusz P. Rutkowski ◽  
◽  
◽  
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Product Innovation ◽  
Information Needs ◽  
New Products ◽  
New Product ◽  
Industrial Enterprises ◽  
Industrial Companies ◽  
Product Innovations ◽  
Value Contribution

Aim/purpose – This paper attempts to arrange and present the methods of measuring the competences of production enterprises in the field of product innovations.Design/methodology/approach– The method used in this paper is a literature review, in the area of new product development management. The author assumes that the re-view and conceptual nature of this research is dominant.Findings– The obtained results indicate the importance of measurement in product innovation competencies and provide various metrics in this field. The author proposes new indicators to measure competencies in this area, i.e., the intensity of competition on new products market. Research implications/limitations– The results provide a basis for improving efforts of production enterprises in the field of product innovations. The limitations of the study include a complex character of considered theoretical constructs. Sets of measures must be adapted to the information needs of a specific enterprise.Originality/value/contribution– The values of these indicators reflect the directions of industrial enterprises’ conduct in the process of developing new products and technolo-gies. Moreover, these indicators show the strength of linking technology with the effec-tiveness of new product development, and consequently with the enterprise marketing, economic and financial efficiency. The contribution of research to the development of management sciences primarily includes the formulation of a set of indicators whose level determines product innovation competencies in industrial companies. Keywords: competence measurement, product innovation, production enterprise, new product, technical and marketing strategy.JEL Classification: O31, O32, M21

scholarly journals Manufacturer’s Sharing Servitization Transformation and Product Pricing Strategy

2021 ◽  
Vol 13 (3) ◽  
pp. 1503
Author(s):  
Zhenfeng Liu ◽  
Ya Xiao ◽  
Jian Feng
Keyword(s):  
Supply And Demand ◽  
New Products ◽  
Unit Cost ◽  
New Product ◽  
Sharing Economy ◽  
High Rate ◽  
Pricing Strategy ◽  
Product Pricing ◽  
The Cost

The sharing market includes the idle product sharing by the owner and the firm’s new product sharing. Companies participating in the sharing economy choose to withdraw from the market because it is always difficult to make a profit, due to heavy asset investment, but there is no such worry for owners who do not need cost input. At the same time, we have observed that the sharing products launched by companies are difficult to meet the rental needs of consumers. Based on the above findings, we have constructed a model where there is a market where a monopolistic manufacturer sells and rents out at the same time, and owners who purchased new products can choose to rent out products when they are idle. Because of the uncoordinated supply and demand matching of the sharing market and the excessively high unit cost input, our research found that: (1) the barriers for the manufacturer to enter the sharing market are always high—for example, the manufacturer will choose to enter the sharing market only when consumers have a high rate of availability of sharing products. Only when the cost of products in the sharing market is not low will the manufacturer choose to provide sharing services; (2) the competition between the two products in the sharing market weakens the demand cannibalize in the sales market; (3) the manufacturer enters the sharing market to promote the owner’s income. The owner’s earnings will increase with the rising of sharing products’ availability.

Researching the factors influencing the satisfaction of master students at VNU School of Interdisciplinary Studies

2019 ◽  
Vol 35 (3) ◽  
Author(s):  
Do Huy Thuong ◽  
Nguyen Thi Phuong Hong
Keyword(s):  
Service Industry ◽  
Interdisciplinary Studies ◽  
Number Of Solutions ◽  
Factors Affecting ◽  
Training Institutions ◽  
Market Needs ◽  
Market Strategies ◽  
Students Satisfaction ◽  
Training Service

Improving the quality in order to keep up with the trend in the world is the vital task of training institutions today. Training institutions need to grasp market needs and satisfy the requirements of customers - learners. Nadiri, H., Kandampully, J & Hussain, K. (2009) argue that the managers in education need to apply market strategies that are being used by manufacturing and business enterprises and need to be aware that the role of training institutions is a service industry which is responsible for satisfying learner needs (Elliott & Shin, 2002). Currently, there have been many researches on students’ satisfaction. However, each research has its own objectives and is conducted on different scales. This study is implemented to provide information about the factors affecting master students’ satisfaction with the training service at VNU School of Interdisciplinary Studies (VNU SIS). Through it, the research offers a number of solutions to improving the satisfaction level of the master students at VNU SIS in the coming time.

The Microeconomics of Product Innovation

2018 ◽  
Author(s):  
Paul Stoneman ◽  
Eleonora Bartoloni ◽  
Maurizio Baussola
Keyword(s):  
Product Innovation ◽  
New Products ◽  
Goods And Services ◽  
Product Innovations ◽  
Microeconomic Analysis ◽  
Prime Objective ◽  
Price Measurement ◽  
The Impact

The prime objective of this book is the use microeconomic analysis to guide and provide insight into the generation and adoption of new products. Taking an approach that uses minimal formal mathematics, the volume initially addresses questions of definitions, sources, and extent of product innovation, differentiating between goods and services; hard and soft innovations; horizontal and vertical innovations; original, new to market, and new to firm innovations. The sources of product innovations (e.g. R&D, design, and creativity) are explored empirically, and the extent of such innovations is then pursued using survey and other data. Three chapters are devoted to the theoretical analysis of the demand for and supply of new products and to the determination of firms’ decisions to undertake product innovation. Later chapters encompass empirical evidence on the determination of the extent of product innovation, the diffusion of such innovation, the impact of product innovation on firm performance, price measurement, and welfare, while the final chapter addresses policy issues.

Entrepreneurial Bricolage and New Product Development Performance in New Ventures: The Contingent Effects of Founding Team Involvement

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Xinchun Wang ◽  
Xiaoyu Yu ◽  
Xiaotong Meng
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Resource Constraints ◽  
New Ventures ◽  
New Products ◽  
New Product ◽  
Strategic Decision ◽  
Entrepreneurial Bricolage ◽  
Founding Team ◽  
Npd Performance

Abstract New product development (NPD) performance is a key determinant of a new venture’s success. However, compared with established firms, new ventures often suffer from resource constraints when developing new products. Entrepreneurial bricolage is reported in the literature as an alternative strategic option that enables managers to overcome resource constraints when developing new products. However, because new ventures are often founded by an entrepreneurial team, the effectiveness and efficiency of using bricolage to improve NPD performance might be contingent on how the founding team plays its roles in this process. Using data from 323 new ventures in China, we find support for the critical role of entrepreneurial bricolage in improving NPD success under resource constraints. More importantly, our results reveal that the bricolage strategy is more likely to benefit a venture when the founding team is composed of members with diverse functional backgrounds and is not heavily involved in strategic decision-making.

New Product Development in Malaysia: Does Organizational Background Really Matter?

2014 ◽  
Vol 68 (3) ◽  
Author(s):  
Tan Owee Kowang ◽  
Amran Rasli ◽  
Choi Sang Long
Keyword(s):  
Product Development ◽  
Research And Development ◽  
New Product Development ◽  
New Products ◽  
New Product ◽  
Multinational Companies ◽  
Product Performance ◽  
Survey Questionnaire ◽  
New Product Performance ◽  
Npd Performance

New Product Development (NPD) is vital in assisting Research and Development (R&D) based organizations to adapt to the changes in markets and technology for competitive advantage. Ensuring the success of new products and optimization of new product performance is critical and essential for Research and Development based organizations.  Hence, this study is carried out to explore does organizational background in term of company’s ownership (i.e. local or multinational companies) and operational scales (i.e. number of Research and Development staffs) affect NPD performance of Research and Development companies in Malaysia. In line with this, 8 New Product Development performance attributes were identified from literature review. These attributes were subsequently formulated into a survey questionnaire and responded by 186 respondents. Thereafter, the effect of organizational ownership and operational scale toward NPD performance are examined separately via Independent Sample t-test and Analysis of Variance (ANOVA). Finding from the study revealed that the level of NPD performance in multinational R&D companies is higher than local R&D companies. Findings from this research also implied that NPD performance can be further improved by increasing number of R&D staffs.  

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