Advertising and Pricing Strategies Essay Example | Topics and Well Written Essays - 250 words

Advertising and Pricing Strategies - Essay Example This feeling is as a result of Apple’s price skimming strategy that excites late adopters who are able to get their expensive products at a bargain price. This not only creates good will for the company, but also increases their revenue. Moreover, late adopters increase its market share. According to Perreault, Cannon and McCarthy (2011), a price skimming strategy focuses on profit maximization by charging a high price for early adopters of a new product then reducing the price to attract thriftier consumers. Apple has adopted this strategy because it helps them to create an aura of prestige around their products while generating a lot of profits. Moreover, it allows them to reduce their prices to encourage consumers to buy. The purchase decision was informed by a number of factors. First, the affordability of the product. Second, the utility of the product. The iPhone 5c has a lot of features that add value to the consumer. Third, the uniqueness of the brand. Apple products have a beautiful design. Moreover, they are elite products because their high price discourages most people from buying. The research process involved a comparison of different mobile phone reviews online. In addition, conversations with friends and family members reinforced the decision to purchase an iPhone