Pricing Solution Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Question 1: The launch of a new wireless content technology

PHASE - I

1. Based on the survey results, recommend a percentage mark-up for the subscription pricing. Please show your work.

2. What concerns, if any, do you have with this survey and its ability to provide meaningful information for the pricing of the subscription plan? Explain.

Considering the server, a 20% mark up on cost will be a valid recommendation for the subscription pricing. This computation is based on the hypothesis that 80% of the price set during the survey will be the price of the cell phone whereas the remaining 20% of the price will be regarded as the price of the subscription package, as the data showed no clear breakup of the prices of the each product. Since, when the cost of either the product was not given, then a 20% markup was assumed over the price to reach the cost and the profit margin. The most important information that was derived from the data provided that with the $125 reduction in price of the entire package (cell phone + subscription contract), there was a 10% increase in demand that was 50 people in the 1000 people survey that means there was a reduction in price of $2.5 and an increase in demand of 1 person. This data can be very useful while setting the final price of the contract.

Considering the fact, the company needs to figure out the right price for its product that is the service subscription contract conducting a survey where you are asking from people for the price to be paid for the phone plus the subscription contract is an manipulated result as the survey has to be purely about the service contract rather than a combined offer of the phone and the contract.

This survey is completely useless for the firm considering the fact the firm was hired to focus solely on subscription pricing rather than a combined package of the phone and the contract.

The conduct of the review should have been in a way, which would have defined the need and the craving of the public to use their phones to watch their favorite programs rather than setting up a selling scheme to induce people to buy the complete package.

There was no pricing strategy worked up before the survey was conducted rather two random prices were made up during the survey, which didn’t even show the cost of the product and the prices suggested were a combination of the phone and the contract, the survey didn’t even include the prices of the individual products.

There are 8 characteristic of an effective survey, which was all missing from the survey conducted. These are as follows:

Sufficient demographic information: With the help of the survey, the end user of the survey should be able to break the survey into the demographic groups that have filled out the survey, a survey cannot be conducted on random bases, there are multiple ethnicities in US that have different taste, needs, desires and demands from the products they use as not every person has the similar need, the survey should be able to identify that unfortunately this survey was not able to achieve.

Focused Survey: A survey should be constructed in such a way that it defines the core purpose of the task and should not focus on any irrelevant questions. But unfortunately this survey was completely off the task.

Clear Questions: Make the survey easy to understand for the people by not using any technical jargons or anything that may confuse them about the product, which will lead to answers that will be of no use to the company.

One-Part Questions: Sub-divide questions in two parts because if the person who fills the survey agrees to one part of the question but not the other so the answer will be of no use. By breaking the question, the answer given will become more reliable. This should have been implemented in this survey regarding the option of the contract or the option of contract along with the phone, which would have given more reliable information.

Other Options: If any questions asked in the survey consist of multiple choices and the desired answer of the person filling the survey is not within the options then an option of Others should be included with the clause please explain, with such a methodology a relevant and accurate answer will be received.

Logical sequence of Questions: There should be logical flow from each question by passing it on to the other, which makes it seem like each question that is related to a logical flow to the entire survey. Unfortunately, this survey had no logic at all.

Motivation: There should be some sort of motivating element for the person giving the survey to actually induce people to participate in the survey. An offer of the mobile phone was the motivating element in the current survey due to which 1000 people actually attempted the survey but due to the fact the mobile element dominated the entire survey makes the survey less usable.

Openness: If there is any ...............................

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