Advertising and Pricing Strategies Essay Example | Topics and Well Written Essays - 250 words

Advertising and Pricing Strategies - Essay ExampleThis feeling is as a result of Apples cost skimming system that excites recently adopters who are able to get their expensive products at a bargain price. This not only creates good will for the company, but also increases their revenue. Moreover, late adopters increase its market share. According to Perreault, Cannon and McCarthy (2011), a price skimming strategy focuses on profit maximization by charging a high price for early adopters of a new product then reducing the price to attract thriftier consumers. Apple has adopted this strategy because it helps them to create an aura of prestige close to their products while generating a lot of profits. Moreover, it allows them to reduce their prices to encourage consumers to buy.The purchase decision was informed by a number of factors. First, the affordability of the product. Second, the utility of the product. The iPhone 5c has a lot of features that extend value to the consumer. Third, the uniqueness of the brand. Apple products have a beautiful design. Moreover, they are elite products because their high price discourages most people from buying. The research process compound a comparison of different mobile phone reviews online. In addition, conversations with friends and family members reinforced the decision to purchase an iPhone