Market Research Factors: It is very important that detailed and significantly designed research is carried during the development process or else it would lead to a complete failure and money wastageThe NPD is a highly costly process for a business. Slightest mistake during the research and at the time of rolling out of the product can actually make a firm shut down. On the other hand, if the customers appreciate the product launch, the business will for sure touch new horizons.To settle on an effective pricing strategy, a firm has to have an excellent understanding of its costs, the value fashioned for customers, and competitor pricing. Defining costs tend to be more easily said than done in a service business than in a manufacturing business. Without a good quality understanding of costs, managers cannot be sure that the prices set are, in fact, adequate to recover all costs.Another challenge is to speak about the value that customers give in a service to the price that they are prepared to pay. This step requires an accepting of other costs that the consumer may be acquiring in purchase and use, counting such nonfinancial costs as time and effort. Managers also need to be familiar with that all customers, offering the potential to set different prices for different marketing segments, may not respect the same service in the same way.Competitor pricing cannot be compared dollar for dollar. Services tend to be location and time specific, competitor services have their own set of related monetary, and nonfinancial costs, sometimes to the extent that the process charged become secondary for competitive comparisons. Competitive Pricing needs to take into. Product Development is Waste Money.
Lovelock, C, and Wirtz J, ‘Services Marketing’, People, Technology, Strategy,
Edition. 5. Pp. 121-174
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