Create loyal customers as these markets emerged

Assignment Help Business Economics

Reference no: EM131101678

Few years back, HP launched four new computer models aimed at the Chinese and Indian consumer markets to create loyal customers as these markets emerged. Using penetrating pricing strategy, HP priced the new computers under $400, significantly less than its computers sell for in the United States. Do you think this type of pricing strategy can be successful? Why or why not? What steps do you predict HP will take as it sets prices for products in these markets in the future?

Reference no: EM131101678

Questions Cloud

Construction firm needs new small loader : A construction firm needs a new small loader. It can be leased from the dealer for 3 years for $5500 per year including all maintenance, OR it can be purchased for $20,000. The firm expects the loader to have a salvage value of $7,000 after 7 years.

Describe their relationship to one another : Define the following concepts and describe their relationship to one another:

Monopolistic competitition differs from perfect competition : Monopolistic competitition differs from perfect competition primary because in monopolistic competition,

Quantity demanded for good : Alex has a utility function U=3 sqrtXY The price of good X is $1, the price of good Y is $2, and her income is $100. Her quantity demanded for good X is ___ Her quantity demanded for good y is___

Create loyal customers as these markets emerged : Few years back, HP launched four new computer models aimed at the Chinese and Indian consumer markets to create loyal customers as these markets emerged. Using penetrating pricing strategy, HP priced the new computers under $400, significantly less t..

Calculate its accounting profit : Consider a perfectly competitive, profit-max firm that sells its output for $10 each and produces and sells 925 units. Its total variable costs are $4000 and its total fixed costs are $3600. Calculate its accounting profit.

Firm in monopolistic competition : In the short? run, a firm in monopolistic competition? ______.

Marginal revenue is equal to marginal cost : A monopoly is producing a level of output such that marginal revenue is equal to marginal cost. The firm is selling its output at a price of $10 per unit and is incurring average variable costs of $5 per unit and average total costs of $8 per unit. G..

Demand function for profit maximizing monopolists good : Suppose the demand function for a profit maximizing monopolists good is P = 160 - 0.5Q, its total cost function is TC = 20 + 10Q + 0.3Q2, and its marginal cost function is MC = 10 + 0.6Q. If the firm uses a uniform pricing strategy, then rounded to t..

User Account

All Pages