In 1999, Sony introduced a new product into the U.S. market. It was Aibo, the first interactive robot dog. It was able to learn its name, respond to commands, dance, and be programmed to perform a variety of actions.

Assume Sony’s variable costs for producing this product were around $700, and market research indicated that the VTC of this product was around $1,400. Recommend a price that consumers should be charged for this product, and explain how you considered the factors determining initial-pricing strategy in making your recommendation.

Answer rating: 100% (QA)

We have a contribution margin of the product ie CMVTCVC 1400700700 and CM VTCVCVTC x 10... View the full answer