This article shows that the price is much more important than it seems. It has the most immediate repercussion on sales and revenues. but everything comes together. A good brand strategy, may make customers to pay an extra for the product if it is worth it. So price has to be consistent with the product.
A good example of brands that charge an extra for quality and service is Starbucks. The coffee brand presents their products as an affordable luxury. This way, their target market is a high-income group of consumers. The demand in Starbucks and in this type of business is inelastic, because if the price raises the demand will diminish practically nothing.
Starbucks is a sign of good quality or at least that is an identifier for the brand. and their high prices is what you have to pay if you want to consume that quality, other ways you should choose cheaper brands like Dunkin Donuts.
To know more about pricing strategies click here and read number 4
A good example of brands that charge an extra for quality and service is Starbucks. The coffee brand presents their products as an affordable luxury. This way, their target market is a high-income group of consumers. The demand in Starbucks and in this type of business is inelastic, because if the price raises the demand will diminish practically nothing.
To know more about pricing strategies click here and read number 4
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