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Essay / Research Paper Abstract
This 4 page paper looks at the way in which a pricing strategy may be assessed for an exclusive designer label. The example of Burberry is used, and issues such as positioning and the need to maintain exclusivity, the buying patterns of the target market and brand perception are all discussed. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEburberryp.doc
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Unformatted sample text from the term paper:
the way pricing will impact the value of the brand, consumer perceptions as well as sales and profits. Prices are one of the ways a firm will communicate with
the target market; indicating the positioning of a product (Kotler and Keller, 2008). Prices will be used to indicate the market position and quality with consumers making judgements based in
the pricing along with the marketing. For most goods there is a link between the quantity of the goods demanded and the price; where the price decreases the demand from
consumer will increase (Nellis and Parker, 2006). The converse is also true; as the price increases the demand will decrease (Nellis and Parker, 2006). However, the relationship is not simple,
as there are many influences which need to be considered. The product will not exist in a vacuum; other influences will include the availability of competing and complimentary goods, the
disposable income of the purchasers and the perceptions of the product quality and uniqueness, along wit the effectiveness of any competitive advantages in deterring consumers from purchasing alternate products (Hooley
et al, 2007). Higher levels of disposable income will support more purchases and purchases or higher priced goods, whereas lower levels of disposable income will constraint the spending that
can take place, especially on luxury or non essential items (Nellis and Parker, 2006). When placing Burberry pricing decisions within this context the market that Burberry are seeking to
attract needs to be considered as well as the level of sales which are likely to be optimal for the best long term profit generation. As Burberry is a premium
brand the firm needs to ensure that the pricing reflects this premium position with a premium price. The high price will indicate that it is a quality product. In turn
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