A COMPANY THAT USED PENETRATION PRICING TRIAL

Even higher up the price-point scale was the $3,600 iRobi robot made by the Korean company Yujin Robotics to entertain kids and even teach them foreign languages.

Sony offered a pet dog robot called Aibo, but its price tag of $1,800 was really high. True, there were some “toy” robots available, but they were not nearly as sophisticated. When Robosapien was introduced to the market, it had little direct competition in its product category. New Product Pricing Strategies Figure 15.1: Sony’s robot dog, Aibo. We’ll begin by discussing two strategies that are particularly applicable to products that are being newly introduced. Let’s look at several pricing options that were available to those marketers at Wow Wee who were responsible for pricing Robosapien, an example we introduced earlier. On the other hand, if you price too low, you might not make enough profit to stay in business.

Or your company might even find itself facing competition from some other supplier that thinks it can beat your price. If a product or service is priced too high, many people simply won’t buy it.

A COMPANY THAT USED PENETRATION PRICING TRIAL

Pricing a product involves a certain amount of trial and error because there are so many factors to consider. Pricing is such an important aspect of marketing that it merits its own chapter. As introduced in a previous chapter, one of the four Ps in the marketing mix is price.

A company that used penetration pricing