Impact of Pricing Strategies on New Products of Engineering Sector (T-0651) (MFN 6907)

Abstract

The purpose for undertaking this study was to examine the success of three pricing practices with respect to different types of information used in the pricing process on engineering products (respectively on customer value, competition and cost) which are very important aspect of a company. This study have explored the effect of value, competition and cost information on new product performance which are contingent on product in Pakistan. This study have used the methodology of reliability, Pearson correlation and ordinary least square regression to find robust results. The results suggest that for the success of new product in the market, the practices of cost informed pricing, competition informed pricing and value informed pricing are essential. Further, the results suggest that there are in general no “good” or bad practices but contingent approach usually more appropriate to adopt. Key Words: Pricing, New Product Performance (NPP), Cost Informed pricing (CIP), Relative Product Advantage(RPA), Competitive Intensity(CI), Strategies, Value Informed Pricing (VIP).