Question: MKT 3 4 0 - Project # 1 1 - Chapter 1 1 Project # 1 1 - Chapter 1 1 - Selecting a Pricing

MKT

340 -

Project #

11 -

Chapter

11

Project #

11 -

Chapter

11 -

Selecting a Pricing Strategy

Refer to Project #

10

and assume all the details given remain in effect. You're coming up with a price for the new self

-

driving system for WAYMO.

There are numerous competitors working on a similar device, including the truck manufacturers

(

Peterbilt

,

Mack, Volvo, Kenworth, et al

) .

Given your head start, you believe you'll have a

12 -

18 -

month window before a viable competitor enters the market with their own device. Once competitors do enter the market, however, they'll be formidable.

Would you recommend a penetration or skimming pricing strategy? Defend your recommendation.

Hint: You may want to take into account the experience curve effects detailed in Project #

10 .

MKT340- Project #11- Chapter 11 Project #11- Chapter 11- Selecting a

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