D. A Reference Price Is A Price Which Consumer Think Is The Most Appropriate Price and

D.
A reference price is a price which consumer think is the most appropriate price and
fair price for the product. However if a marketer can influence the reference price to
make consumers willing to pay more for the product .The strategies that a marketer can
use to make consumer willing to pay higher then reference price are given below:
By advertising or promoting the brand in such a way that it is perceived as the exclusive
product. Company can aware people about the efficiency of product to the new level by
differentiating it as the most durable and efficient lightening ever.
The lightening can be given for a free taste in the reputed organization and that can be
used as promotion .For instance, giving the impression that even these reputed company
are using this product, so it must be different fro other .
In these ways they can perceive the price higher.
C. In contemporary business world consumers has added a new variables (country oforigin) to determine quality by being based on the country of origin. It is believed country
of origin heavily influence the consumers perceptions on the brands quality, intention of
purchase and their attitude towards the product. Katsanis & Thakor (1997) argues that a
countries specific factors like experiences from many users on manufacturing, quality of
raw material produced by country, its reputations in international market and the internal
level of competition heavily influence the customers perception about the brand.
As Russia has the high reputation on cross county ski among the world. I certainly would
like to be associated to the name of country. Being linked with the country would add
extra value / incentive that certainly will influence the customers perception. Example:
they may perceive us as the authorized and experienced brand.
E.
As a software company with the new software to measure the employee performance I
would use the value based pricing as my pricing strategy initially. As there is mostly
problem in the large industry to access the employee performance. I would try to
communicate the value of my product to the customers by differentiating it from the
customer offering in the large organization. Differentiating the product in a manner that
really matters to the customer will deliver ultimate value to the customer and can be a
framework for value based pricing (Macdivitt and Wilkinson, 2012)
A value based pricing strategy works to determine the true willingness to pay of a target
customer for a particular product. First of all I would calculate the products objective
value by evaluating how much customers would pay of they had to make rational
decision. Then I would communicate the perceived value to customers by making them
aware them how this software can improve their business, how this product is different to
other and let them test in the big organization for trial period. The marketing of my
software would help to promote those perceived value further. After analyzing the cost I
would make a comparison on perceived value, objective and economic value of the
product and finally decide on the price of the product.
F. In transfer pricing it is assumed that there is a transfer of goods or service among the
two responsibility centers within the organization. So, Transfer price is a price that one
division of the company charges to other division of same company for selling goods or
service.
The responsibility center can be can be the branch, subsidiary or divisions of a company
that may operate differently but have are part of same organization. So in transfer pricing
the company set the rules that can be implemented by organization to allocate the revenue
that is jointly earned among these responsibility centers.
Lavack, A. M., & Thakor, M. V. (2003). Effects of perceived brand origin association on
consumer perception of quality. Journal of Consumer Marketing, 13(3), 27-42.
Macdivitt, H. and Wilkinson, M. (2012). Value-based pricing. New York: McGraw-Hill,
p.13.

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