Pricing Policy and Strategies for Consumer High-Tech Products

• Author: Dovleac, L.
• Position: Centre of Economic Research, Faculty of Economic Sciences and Business Administration, Transilvania University of Brasov
• Pages: 37-42

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 7 (56) No. 1 - 2014

PRICING POLICY AND STRATEGIES FOR

CONSUMER HIGH-TECH PRODUCTS

Lavinia DOVLEAC1

Abstract: This paper highlights the complex process of pr ice setting for

consumer high-tech products. These prices are highly influenced by some

external factors from the economic and social environment. The main

objective of this paper is to establish the most effecti ve pricing policies and

strategies used by high-tech companies of various sizes. Decisions about

price fixing for consumer high-technology products are largely influenced by

consumer behaviour, too.

Key words: high-technology market, price policy, marketing mix.

1 Centre of Economic Research, Faculty of Economic Sciences and Business Administration, Transilvania

University of Braşov.

1. Introduction

By developing an effective marketing

mix are created, promoted and delivered

innovative products and services that

provide benefits to consumers, business

partners and generally, to the entire

society. Marketing mix planning begins

with formulating an offer that brings value

to target customers. This offer becomes the

basis on which the organization develops

its profitable customer relationships.

First, the paper captures those multiple

factors influencing price fixing for high-

tech products. Then the attention focuses

on establishing price policy which is a

complex process in marketing of high

technology products. Price is a very

important strategic tool for companies in

high-tech industry. Pricing decisions

should be consumer oriente d.

In the paper last part are analysed

specific pricing strategies for high

technology product s. An effective and

consumer-orientated pricing strategy

means that marketing specialists

understand how much value s have the

benefits provided by the product for

consumers. Then they have to set a price

appropriate to this value. Usually, in high-

tech industry pricing strategies change,

being different for each life cycle stage of

the product.

2. Factors influencing the price setting

for consumer high-tech products

Every producer would like to set a high

price for its high technology products to

cover the investments in research and

development or to prove the high quality

of products. But there are some internal

and external factors that put pressure on

price diminishing.

Forces affecting the price are varied and

very strong: volatile short life cycle of the

product, the rapidly changing mark et, big

investments in research and development,

compatibility with existing products, the

Internet, competition, external networks,