WEEK6 RESP DIS

Please respond (YOUR THOUGHTS) to the two PEER below discussions. Cite references in APA format.

1. MW.

What do you think your brand image is in terms of quality and value to your consumer?  Are you high-end, low-end, or in-between?  Explain as it relates to your major competitor. As far as branding is concerned our product would be more of a high-end brand in its perspective field. In terms of how it is viewed, its qualities and value would far exceed its competitors due to the nature of its effects on the body. Chemotherapy produces harmful effects on the body while in treatment, however. When it comes to our product there are no drawbacks.

Given the image you want to project and where you are in the Product Life Cycle (studied in previous modules), what type of pricing scheme do you think you should use (e.g., prestige pricing, penetration pricing, skimming pricing, bundle pricing, odd-even, value, etc.)? Why will this scheme work best for your target market? For our product, the best strategy would be penetration pricing—the reason why the long-term benefits would out way the cost. An example would be making it a cheaper alternative that undercuts the already established methods while reaching a wider audience. In addition, we can bill insurance companies to make up for the cheaper out-of-pocket cost. 

What do you think your final price might be for this product?  Provide a realistic range and discuss why. When it comes to pricing, we have to look at our competition and adjust from there.  “Depending on the drug and type of cancer it treats, the average monthly cost of chemo drugs can range from $1,000 to $12,000. If a cancer patient requires four chemo sessions a year, it could cost them up to $48,000 total, which is beyond the average annual income” (Selby, 2019).  To undercut the price of chemotherapy, I would say our price should range from $750- $10,000, with a total of $40,000. The reason why I’ve decided on this is due to the recoupment our company will receive in the future. Keeping the prices low will encourage more patients plus the added benefit of more advantageous health results.

References:

Selby, K. (2019, December 9). High Cost of Cancer Treatment.  Asbestos.  https://www.asbestos.com/featured-stories/high-cost-of-cancer-treatment/

2.EH. Brand image is essential when introducing a new product; it can evoke an emotional response from consumers if they are already familiar with the brand (Donnelly, 2018) . One way our product evokes a positive image is by brand storytelling. Brand storytelling is when consumers share their thoughts and times when they have played the game; happy times, including bonding exercise games for organizations, can evoke positive stories that are told to others or recanted with those who have played the game (Hong, Yang, Ross Wooldridge, & Bhappu, 2022). The brand storytelling further invites others to purchase the products to mimic the consumer's good time that they had. Cards Against Humanity's brand image is one that consumers know will have fun but with some corporate lingo humor. The value the game will bring to consumers is they can replay the game whenever they want; it is a work-appropriate version, so not only does the organization that purchased the game gain value due to the continuous usage and teambuilding to make more substantial teams, the players gain value by being able to enjoy time with their workmates. Cards Against Humanity is on the higher end of the spectrum than our competitors. One of our major competitors is Exploding Kittens; they sell its game for around $20, and our game will sell at $39 per edition (SkyPigGames, 2024). However, our game is marketed to corporations that need a game that has humor, is well-known, and can be used continuously; we are also offering a corporate pricing model that allows them to purchase in bulk at a discount, whereas other games do not.

Our product is in the introduction product life cycle, and penetration pricing strategies would be the most cost-effective for our product. Penetration pricing allows us to enter the market at a lower price, which would help to increase sales with consumers and help spread the product by word of mouth (Bertrand, Naila, & Georges, 2020). Penetration pricing would also allow us to increase the price over time to cover costs (Donnelly, 2018). Cards Against Humanity is a well-known name; however, this is a new product with the company that must be marketed to professional organizations that are only aware of the other games we manufacture, hence the penetration pricing model.

The final price for the product will be around $39. The price will cover the initial manufacturing and overhead costs. The product is in a high range compared with our competitors. Card games typically cost between $15 and $40 (SkyPigGames, 2024). What sets ours apart from the competitors and explains the price is that they are tailored to professional organizations that can purchase bundled products.

References

Bertrand, C., Naila, H., & Georges, Z. (2020). Existence and characterization of optimal dynamic pricing strategies with reference-price effects.  Central European Journal of Operations Research, 28(2), 441-459. doi:https://doi.org/10.1007/s10100-019-00645-w

Donnelly, J. (2018). A Preface to Marketing Management. (15th). U.S: McGraw-Hill Higher Education. Retrieved from https://reader2.yuzu.com/books/9781260300147

Hong, J., Yang, J., Ross Wooldridge, B., & Bhappu, A. D. (2022). Sharing consumers’ brand storytelling: influence of consumers’ storytelling on brand attitude via emotions and cognitions.  The Journal of Product and Brand Management, 31(2), 265-278. doi:https://doi.org/10.1108/JPBM-07-2019-2485

SkyPigGames. (2024, February 4).  Games Like Cards Against Humanity. Retrieved from Sky PIg Games: https://skypiggames.com/blogs/game-reviews/9-best-games-like-cards-against-humanity#:~:text=Exploding%20Kittens%20%E2%80%93%20Strategic%20Card%20Game%20with%20a%20Twist&text=The%20original%20edition%20is%20priced,suspense%20without%20a%20lengthy%20commitm