ECONOMIC ESSAY

Economic Essay

Economic Essay

The pricing strategy that Donna should implementin this scenario is premium pricing.Premium pricing strategy establishes a price higher than the competitors. It's a strategy that can be effectively used when there is something unique about the product or when the product is first to market and the business has a distinct competitive advantage. Premium pricing can be a good strategy for companies entering the market with a new market and hoping to maximize revenue during the early stages of the product life cycle. (Hicks 2010: 139-155)

In the second case where Donna does not know exactly every ...