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Essay / Research Paper Abstract
A 5 page paper discussing pricing strategies for Microsoft’s ergonomic keyboard, the Natural® Pro, discussing list-, street- and in-between pricing. The bottom line is that the mix of pricing strategies to different types of retailers provides Microsoft with the broadest range of customers served and therefore the highest volume it can manage in sales of its ergonomic keyboard. Every conceivable business or consumer need is met in at least one avenue; sometimes consumers can find comparable prices in more than one approach. Maintaining an artificially high list price and refusing to discount it for any reason allows Microsoft to manufacture and market the item in great volume without devoting more than only minimal resources to selling it. Bibliography lists 4 sources.
Page Count:
5 pages (~225 words per page)
File: CC6_KSmktgKeybrd.rtf
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Unformatted sample text from the term paper:
that paying list price for any computer-related system or component is folly intended only for those corporate entities that need to produce some creative numbers. If the books indicate
that the business has paid $75 for a keyboard, then the business can minimize - on paper - other costs that will come under greater scrutiny by investors and tax
examiners. Of course that $75 price is only a "paper" price. The business will be given a discount on its total order that effectively reduces the list price
to a range closer to the more common and widely available street price. The Product
These practices and need for consideration for the appearance of the balance sheet works well for corporate entities, but what of the rest of us? Those of us willing
to do some investigative work also can find "deals," and those offering us only list price are well aware of that fact. In the case of the Microsoft(r) ergonomic
keyboard, Microsoft fully understands that few if any individuals will be purchasing a keyboard from them for $75 that they can find at any Internet store front for less than
$40 including shipping. The rationale for maintaining the $75 list price is to (1) provide a point of negotiation with business customers and (2) provide a basis on which
individuals can believe they have found "a deal" with resellers. Resellers are those other business entities from which Microsoft can profit far more than is possible through any number
of sales to individuals. Microsofts ergonomic keyboard is the hands-down favorite of those users who prefer the ergonomic design over the standard straight
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