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Available: Jan 23, 2026 12:00am until May 22, 2026 11:59pmAvailable: Jan 23, 2026 12:00am until May 22, 2026 11:59pm
Pricing Goals Scenario Match (Create a Microsoft WORD Document & Submit It)
Directions:

Students are given 3 business scenarios

Match each scenario with the best pricing goal

Justify answers in 1–2 sentences each

Example: A new business lowers prices to attract customers → Market Share

Business Scenarios:

A technology company launches a new smartphone with advanced features. The phone is priced very high at first, targeting early adopters. After several months, the company gradually lowers the price to reach more customers.
A luxury watch brand has been in business for over 50 years. The company intentionally sets very high prices, rarely offers sales, and limits how many watches are produced each year to maintain exclusivity.
A new energy drink brand has just entered the market. It is competing with well-known brands like Red Bull and Monster. The company sets its prices lower than competitors and offers frequent discounts to attract first-time buyers and build brand awareness.
Pricing Research
Students research:

Current prices of 2–3 products from their chosen business

Identify:

Which pricing goal the company seems to use

Evidence to support their answer

Answer 1

Below are the scenario matches and brief justifications, followed by a short pricing research example (chosen business: Apple). Update the product prices if you need them to be current when you submit.

Part A — Match scenarios to pricing goals (1–2 sentences each)

1) Technology company launches a new smartphone very high at first, then gradually lowers price.
- Pricing goal: Price skimming (profit maximization on early adopters).
- Justification: The firm initially charges a high price to capture consumers willing to pay a premium, then reduces price over time to reach more price-sensitive segments.

2) Luxury watch brand sets very high prices, seldom discounts, limits production to maintain exclusivity.
- Pricing goal: Prestige (or image) pricing / Status pricing.
- Justification: High, stable prices and limited supply are used to preserve a luxury image and appeal to status-conscious buyers rather than to maximize market share.

3) New energy drink undercuts competitors and offers frequent discounts to attract buyers.
- Pricing goal: Market penetration / Market share (penetration pricing).
- Justification: Low introductory prices and promotions are intended to lure customers away from established brands and build trial and market presence quickly.

Part B — Pricing research example (choose a business and list 2–3 product prices, identify pricing goal, give evidence)

Chosen business: Apple (U.S. retail prices, as listed on Apple’s online store around June 2024 — verify current prices before final submission)

Products and current prices (examples):
- iPhone 15 (128 GB): $799
- iPhone 15 Pro (128 GB): $999
- MacBook Air (M2, base model): $1,199
- Apple Watch Series 9 (GPS): $399

Identified pricing goal: Premium/pricing for profit and brand prestige with selective use of skimming for new models.

Evidence:
- Apple maintains relatively high prices across its product line (e.g., MacBook Air $1,199; iPhone Pro $999) and rarely runs broad, deep discounts, which supports a prestige/profit-oriented pricing strategy.
- For new phone launches Apple often prices new flagship models at the top end (skimming), while older models are discounted or kept as lower-priced options — showing use of short-term skimming plus long-term premium positioning.

If you want, I can:
- Swap Apple for another company you prefer and fetch 2–3 product prices (using known public info up to mid-2024), or
- Format this into a Microsoft Word-style text you can paste into a document for submission.