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Data - Pricing Decisions

A price decision must be made for each product. This is the retail price which consumers pay. The amount received by your firm is found by deducting the retail margin (often around 50%).

The retail price should be set having regard for the price sensitivity of consumers and the prices of competitive products. An rough example for the adventurers segment is shown in the curve below. Of course, many other things also influence demand (for example, advertising, distribution, quality, etc) and this curve assumes that these things are held constant and at reasonable levels.

Make sure that you consider your costs of producing the product!

For suggested price range and price sensitivity information, see:

Reports ---> Scenario Information ---> Market Segment Scenario Information

In the reports menu in the single or multi-player.

See Also

Data - Marketing

Data - Product Decisions

Data - Advertising

Data - Media Product PR