Friday, December 2, 2016

Price

"Price is a component of value (a $4,000 handbag is perceived as being more luxurious and of higher quality than one selling for $100), but low price is not the same as good value. Instead, customers value goods and services that are of the quality they expect and that are sold at prices they are willing to pay." MKTG Page 7
The price for this product is expensive but not 20$ expensive. It's hard to make because we have to take out theobromine (which is the thing that causes the animals to get sick when they eat the chocolate) and replace it with a pet friendly supplement to make it ok for them to eat. I would say our prices would vary from five to seven dollars. Not crazy expensive, but enough to make a value off of it. And of course people are getting what they want for their buck.
"The basic strategy for a cash cow is to maintain market dominance by being the price leader and making technological improvements in the product." MKTG Page 18

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