Samsung and Sony are following Apple's lead in maintaining control of their prices. For example, stores are not allowed to offer sales and discounts on certain products such as premium line televisions (Byford, 2012). The premium price, which reflects the exclusivity of the product, is a price target used by Samsung. Consumers generally equate price with quality; therefore, if they get a high-end product, they are willing to pay higher prices. The combined decision to use premium pricing and not allow stores to offer discounts is risky because they can potentially lose sales to other major competitors such as LG, Sharp and Panasonic. Another strategic pricing target used by Samsung is product line pricing, which is beneficial to both the company and the consumer. Product line pricing offers low-end models of the same product without all the additional features to sell at significantly lower prices, in this case premium TVs. This allows customers who have no interest in extras or who otherwise can't afford the high-end models to still be able to purchase a TV. As a result, TVs offered at a lower price point have the potential to be sold in higher volumes. Competitors should consider skimming to gain competitive advantage. Skimming will provide information about the consumer's willingness to pay. If some skimming were carried out
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