1. From a firm's perspective, successful pricing strategies that help create customer value are ...

Question

1. From a firm's perspective, successful pricing strategies that help create customer value are  influenced by the  five Cs of pricing. Each can potentially affect how many firms  determine their price levels. Briefly explain each of the factors and how these currently affect Kustom Cupcakes approach to pricing. Is the relative influence of the five Cs likely to change in future.
2. Although this is a relatively new retail business in Perth market, Kustom has set the satndards of quality rate.
3. Pricing levels are relatively high because they offer some of the best cupcakes in the Perth market.

David · Accepted Answer

Assignment4
Assignment 
by Student’s name
Professor’s name
University name
October 05, 2017
Answer 1: 
The key to successful product pricing is to understand the industry to which the product belongs and various factors that facilitate such pricing such as company, customers, competitors, collaborators and business climate. Following is a discussion on the 5C’s of pricing in marketing:
· Company- The name of the company is very well known in the market. Despite being located in a good place, the rent is low resulting in lower operational cost. There are variety of products on offer for customers such as cupcakes, wedding cakes. The company also take booking for corporate events.
· Customers- Kustom cupcakes takes special care of their customer by offering discounts to loyal customers, conducting baking classes at affordable prices as per choice of the people. Various pricing strategies and discounting ideas are tried out with customers if they purchase 24 cupcakes or 12 cupcakes at a time.
· Competitors- As mentioned in the case, Kustom Cupcakes is still enjoying a monopoly in the market coupled with the fact that it has a good store location within Perth. But indeed, it would face competition in the future and for that the organization must prepare policies to survive the competitors[footnoteRef:1]. [1:

1. From a firm's perspective, successful pricing strategies that help create customer value are influenced by the five Cs of pricing. Each can potentially affect how many firms determine their price...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment