Strategic pricing across the product’s sales cycle: a conceptualization
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DOIhttp://dx.doi.org/10.21511/im.13(3).2017.01
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Article InfoVolume 13 2017, Issue #3, pp. 6-16
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Establishing the initial price for a new product is one of the most important decisions a firm will make. Implementing and adjusting this price over the sales cycle of the new product are crucial decisions for both its short- and long-term success. A modification of the product life cycle (PLC) concept is presented to reflect one of the many alternative price-setting strategies available to the company. After justifying and illustrating the modified PLC pricing strategy, applications and limitations are presented and discussed.
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JEL Classification (Paper profile tab)M31
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References59
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Tables1
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Figures3
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- Fig. 1. Product life cycle curve
- Fig. 2. Modified product life cycle
- Fig. 3. Modified product life cycle and skimming price strategy
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- Table 1. Major characteristics of each product life cycle stage
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