Pricing

Pricing

Yes , I think the razor and blade ' strategy of Kodak would succeed in the market giving them a competitive advantage over their competitors in terms of the pricing scheme that they are about to implement . It has been the behavior of the consumers to shift their preferences when they have any chance of saving money by purchasing cheaper products ADDIN EN .CITE Perner44443Lars PernerThe Psychology of Consumers-Consumer Behavior and Marketing1http /www .consumerpsychologist .com (Perner . In other words , price and not the quality of the product that greatly influences

the demand of the consumers especially if the good is a normal good or inferior good ADDIN EN .CITE netmba3netmbaPrice Elasticity of Demandhttp /www .netmba .com /econ /micro /demand /elasticity /price (netmba

It is said that consumers would only spend 10 cents per piece from printing a 10-centimeter-by-15-centimeter snapshots . Whereas , they would have to spend 29 cents from a typical home printer and 19 cents from retail stores . We could clearly see that by this very cheap price of Kodak would generate a lot of customers . Revenue and sales returns would really not a problem to the company since demand of the public would surely shift to them

With regards to the effect of the razor and blade ' pricing strategy of Kodak , it would generate competition to the market since the makers of printers and cartridges would try to develop cheaper products ADDIN EN .CITE Korth20052 2243Kim KorthThe importance of innovation and new product development12005http /findarticles .com /p /articles /mi_m0KJI /is_1_117 /ai_n9485217 (Korth . In short , the consumers will be the one that will be benefited by the actions of the Kodak . By this , the government would allow Kodak to implement the said pricing scheme to the market

Furthermore , due to the constant innovation of the companies producing printer and cartridges , the consumers groups would enjoy every innovations that future competition is about to bring . It is due to the fact that the companies have to make innovations to their products form time to time in to attract customers as well as to keep their current customers ADDIN EN .CITE Kurtus3Ron KurtusBusiness Competition12007http /www .school-for-champions .com /competi tion /business .htm (Kurtus . Efficiency and effectiveness would prevail in the economy . In the long run , there would be other companies that would no longer sustain the competition brought by Kodak and they will be forced to shut down their operation . With this , there would be less available threat for Kodak and market dominance is not that far for the company

The multi use of Kodak 's printer would add up to the attraction of their target customers since they no longer have to buy a separate copier or scanner , this tow is already included in Kodak 's printer Companies and households could save not only money , but also space and effort from buying those kinds of stuffs

The only thing that seems to be the problem would be the response of the printer and cartridge industry . If due to the tight competition on...