A Premium-Priced Product


The pricing sensitivity studies conducted as part of the EZ Change market research clearly indicated that this new product had to be priced within a narrow range if it was to be successful. Because hearing aid batteries are bought continuously, consumers especially the current user base of elderly consumersare sensitive to price. When the baby boomers enter the market in a few years , the market may become a little less price-sensitive because these people are more interested in convenience and premium brand names .

Because of its unique advantages and higher cost to produce, it was decided to sell EZ Change at a retail price that represented a premium to other brands. At the time of this writing, the consumer was paying about $7.99 for a traditional spin pack of eight units. The initial price structure resulted in a retail price of approximately $8.99 for an eight-pack of EZ Change.

In the focus groups, many respondents said that they would pay an extra dollar for a product with all of the advantages of EZ Change. Naturally, the smaller the price gap between EZ Change and traditional hearing aid batteries, the more people would buy it. The consumers in the focus groups understood that it would cost more to make EZ Change. They could see that there was a lot of difference in the components , and therefore the cost to manufacture EZ Change, compared with a traditional spin pack of hearing aid batteries.




Powerhouse Marketing Plans(c) 14 Outstanding Real-Life Plans and What You Can Learn from Them to Supercharge [... ]aigns
Powerhouse Marketing Plans(c) 14 Outstanding Real-Life Plans and What You Can Learn from Them to Supercharge [... ]aigns
ISBN: 735621675
EAN: N/A
Year: 2006
Pages: 172

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