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There was even a lawsuit against the company and we can claim that this company needed corrections of its policies in the international business context. Fingerhut's price strategy was the following: no down payment was required. It comprised cash price in addition with shipping and handling prices. Therefore, pricing strategy at Fingerhut Company is considered from different perspectives, but the main intention is to show the relevance of the company’s strategies in the international business market. Pros and cons of Fingerhut Price Strategy Poor customers were the main target for the company and the company provided them with credit as a perfect option. Consequently, Fingerhut Company was blamed for aggressive behavior towards poor clients (i.e. the Company exceeded effective interest rate and was targeting on poor people through misleading advertising campaign). From one perspective, customers were offered an opportunity to obtain goods on credit under conditions of good pricing strategy. In accordance with Crisp, there was a need to increase an option of freedom of choice for the customers, because advertising does not override the autonomy of the customers. Moreover, the company had to develop persuasive advertising on the basis of objective ideological goals. Crisp also claims that people give a chance for the marketers to be manipulated without their own consciousness. In case clients are manipulated, there is a diminution of autonomy (Donaldson and Wehane 2007, p. 507). Therefore, we may claim that Fingerhut’s pricing strategy restricted autonomous desires and consumers choices. Prahald underlines the main concern of the companies on poor nations and poor people. Prahald presented the economic pyramid, where it is determined that there are 4 billion of people from the poorest nations and the largest markets are operating with regards to poor nations (Donaldson and Wehane 2007, p. 575). Thus, marketers take into account the option of the poor nations to buy more and to have access to traditional markets and goods. Moreover, poor people are pleased with an increased attention from marketing directed on their needs and they consider the options, which were previously available for rich people. The main concern for the firms is to build trust between the firms and BOP consumers. Poor people are very brand conscious and very value conscious as well. Conclusion Brenkert underlines a necessity for guarded trust for Fingerhut's company and he defines that the Company lacked considerations about differences in values and motives in the market (Donaldson and Wehane 2007, p. 116). With regards to international business ethics, the main attention of the firms should be focused on commonality of values and motives, consistency of behavior, openness, reputation of the company etc. Therefore, the claim by Prahald and his attention focused on the inconsistencies of the firm’s concerns about the needs of poor people is correlated with Brenkert claim focused on the necessity for consistent international policies in terms of international business ethics. In case Prahald’s claim is chosen as the leading one for further discussions about firms pricing strategy development, then under conditions of international business, marketers should take into account consistent and various needs of poor nations. Moreover, these nations should not be perceived as nations, which are unable to pay for their needs and to buy the goods they want. Unlike Crisp, who underlined that autonomy of poor people is restricted and their conscious is limited by the marketers, the vision of Prahald is more integrative. Case study about rain forest in Guyana Rain Forest Introduction
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(Fingerhut Pricing Strategy Essay Example | Topics and Well Written Essays - 1250 Words)
“Fingerhut Pricing Strategy Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/business/1393775-business-ethics.
Apples pricing strategy Without a doubt, Apple is premium brand that continues to dominate in its competitive market. With innovative products such the Iphone, Macbook and the IPAD, a clever pricing strategy is essential for its success. It can be safely sad that no company is recession proof.
The fate of any business firm is decided by the pricing strategy formulated by it, according to its product’s nature and market value. Both Large and small firms equally maintain a pricing strategy in order to sustain in the business market. However for small business enterprises, pricing strategy is very significant as it decides their sustenance and profitability in the market.
Through this, customers’ expectations will be well served and thus making them get value for their money. In this case, I would prefer an upscale restaurant. An upscale restaurant is one that has fewer customers mostly from the rich class of the society/ economically capable members of the society since they have the ability to make payments promptly.
It has been said that while establishing pricing, three things can happen: firstly, to overprice the product and lose a sale that might have resulted profitable; secondly, underprice and make an unprofitable sale; and thirdly, price accordingly and make both sale and profit at the same time.
Print advertising is a time honored conventional medium that allows product manufacturers to prompt customer response in a very specific and focused manor. One of the best examples of harnessing and conceptualizing it in a visual print advertisement is Apple‘s innovative iPhone Campaigns.
Only the freshest products make it to our kitchen- we do not believe in selling anything below our premium standards. Question 2 Organizations usually have a choice between cost-centric, demand-centric and competition oriented pricing strategy (Levy & Weitz, 2012).
Every organization should have own strategic goals for pricing the products - like prices will never be quoted in such a way that the revenues from the product will be less than 10% above the break even pertaining to the business of that product OR under any circumstances no product shall be allowed to incur losses to the extent that the overall revenues of all products put together will be less than 20% above the break even, etc.
Given current economic conditions, companies are under increasing pressure to sustain profitable operations. Traditional approaches to improving profitability managing costs are necessary, but are increasingly limited. An alternative approach is to address revenue growth as an additional lever to improving profitability.
Changes in price can be made must faster than changes in any other marketing mix variable
A company evaluates mainly the cost and the demand .for the product before setting up the price. However there are various other factors that need to be looked into while setting up the price.
The new marketing plan involves a concerted effort for the marketing of the new line of personal computers and laptops that the company has manufactured. These will target home based customers and in the next year’s plan,
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