DEVELOPING PRICING STRATEGIES AND PROGRAMS
Presentation by Srujan Dasari
HOW
SHOULD A COMPANY RESPOND
TO A COMPETITORS’
PRICE-CHANGE ?
Best response varies with Situation
HOW SHOULD A FIRM RESPOND TO A COMPETITORS’ PRICE-CUT?
In Markets with HOMOGENEITY, a Firm should search for ways to ENHANCE its AUGMENTED PRODUCT
In Markets with NON-HOMOGENEITY, One needs to consider many Issues
Why did the Competitor change the price?
Does the competitor plan to make price change permanent or temporary?
What will happen to company’s market share and profit if it doesn’t respond?
What are the competitor’s and other firm’s responses likely to each possible situation?
DISCLAIMER
Created by Srujan Dasari, IIT Kharagpur,
during an internship by
Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com
