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Pricing Constraint: Factors that limit the ranges of prices a firm may set are pricing constraints. Consumer demand for the product clearly affects that can be charged. Other contraints on price vary from factors within the organization to competitive factors outside the organization. Pricing contraints that restrict a firm's pricing flexibility include
1. Demand for the product class, product and brand
2. Newness of the product
3. Cost of Producing and Marketing the Product
4. Competitor's prices
5. Legal and Ethical considerations
Required: Apple Retail Stores
Why did Apple open its own retail stores? How did this impact their cost structures? How do you apply the above concept (pricing constraint) to Apple? Has the company's decision to open its own stores paid off? If you were one of Apple's retail partners, how would you react? Write 200 words.
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