Similarly, marginal cost is the change in total cost that occurs when one additional unit of a good is produced, so it’s the derivative of total cost taken with respect to quantity. ” (Graham, 2013) Pricing Pricing strategies can be multifaceted. Competitors and the products they produce and offer, consumer demands and suppliers are all factors considered. There are various pricing strategies (I. E. Membership, trade pricing, discounts, penetration pricing) however Cox Communications will continue to use the bundled approach but increase the price for the bundled packages that include the improved HDTV digital cable box.
To entice consumer to switch, initially they will be provided a promotional discount on their total bill for four (4) months. After the promotional discount has exhausted, their billing will go up to the agreed pricing. Once competitive firms upgrade their product to be comparable, Cox Communications will exercise the barrier of entry known as inelastic demand. Consumers want the best product available at the lowest cost possible. Making changes in the pricing structure o be lower than the competitive firm will continue to bring in new revenue and retain current consumers.
Product Differentiation Firms strive to characterize their services and products in a fashion greater
Need essay sample on "Business Proposal"? We will write a custom essay sample specifically for you for only $ 13.90/page
Conclusion A friend is a person whom one knows and trusts. Cox Communications is stating just that in their advertisement “your friend in the digital age. ” Improving the product to better suit the demands of the consumers is instrumental to the success of the business. Providing HDTV on all channels opposed to a selective few will increase to accomplish the upgrade to the HDTV digital cable boxes will ensure consistency across the nation. Cox Communications is dedicated to be trusted to provide the best products and services available to the consumers.