Global Dimensions of International

Business

Alliance School of Business

Ramesh N
Pricing Fundamentals
 Pricing
 Two products
 An attachment that can be fitted to a car at OEM to provide following software
features
 Check the age and sex of the driver
 Female – fine tune parameters for city driving more controls to the in car computer
What parameters drive
 Male – relax parameters with more controls to the driver
development cost of the products
 Male – Teenager – add speed control
 Male – Old Age – add stability and alert control For Product A.
 Drunk driver – sense state of driver and set various control parameters including car lock #
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 How much would the car company pay for the device as a percent of the car cost
#
 Breeza / Rs 10 Lakhs – 10% Rs 1L / 5% 0.5L / 20% Rs. 2L #
 How will they pay for the product – one time or annually
 How do they plan to recover the cost a) increase price or b) absorb cost or c) For Product B
#
 An app that resides in your phone and does the following features
#
 Counts number of times you opened your phone in a day and will provide graphical data #
 Tells you which app was opened and for how long
 By the way the new iPhone can check over 20 health parameters using finger print sensor
 How much would you pay for the app
 Would you download if its is free.
 What features can the developer add to move the user from Free to Premium