Pricing Strategies, Research Paper Example

The Transcend External Hard Drive is believed to be a unique, first-class piece of technology that literally transcends the current hard drive market and offers consumers increased speed and storage capacity unlike the competitor’s products.  The uniqueness of the product and the strong value that the Transcend External Hard Drive holds for each potential consumer are two of the key pricing factors.  Furthermore, the production costs of the product will also be a major pricing factor for considering the range at which the prices should be developed.  Depending on the ability for the company to receive low-cost materials while still achieve high levels of production, the company will be able to have greater leeway in determining pricing levels that will yield the greatest overall net profit.  Ultimately, the financial, organizational and community goals of the company will help determine the actual realized profit potential and pricing strategy for the External Hard Drive.

Due to the similarities of external hard drives in the technological community, it is important for the marketing campaign to illustrate the key differences and unique experience that all consumers will receive through purchasing the Transcend External Hard Drive.  The best option for this company is to choose the Value-Based Pricing Strategy.  Under this strategy, the product will be priced based on the ultimate value that the product provides to each consumer ( ).  Given the unique qualities that this product offers, the customer will receive greater value than any other product currently on the open market.  While customers can still receive a similar experience, the speed and storage capacity of the Transcend External Hard Drive are both much greater than all other products.  However, this pricing strategy does not necessarily mean that the greater the quality of the product will result in higher prices.  This product must be fairly priced in order to maintain value to the consumer.  Prices that are unreasonable will quickly diminish the value of the quality product that Transcend External Hard Drive has to offer.