Strategic pricing across the product’s sales cycle: a conceptualization

  • Released On
    Tuesday, 07 November 2017
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/im.13(3).2017.01
  • Article Info
    Volume 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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    • Fig. 1. Product life cycle curve
    • Fig. 2. Modified product life cycle
    • Fig. 3. Modified product life cycle and skimming price strategy
    • Table 1. Major characteristics of each product life cycle stage