BLUE OCEAN STRATEGY - CHARTING YOUR COURSE - STRATEGIC PRICING

4 important questions on BLUE OCEAN STRATEGY - CHARTING YOUR COURSE - STRATEGIC PRICING

There are 2 reasons why setting a strategic price is so important. What are those reasons?

1. Producing in volume pays greater dividends. 2. Because of the network externalities phenomenon (people place little value on a product or service that is used by few)

True or False. You need to attract customers slowly to have any success at all.

False. You need to attract customers quickly to have success due to network externalities.

A 2 step tool for finding that irresistible price.

Price corridor of the mass
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True or False. Steps of strategic pricing. 1. Identify price corridor of the mass. 2. Specify price level within the price corridor.

True

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