ASSIGNMENT | Harvard Business Review: The Case of the Pricing Predicament #2

Option #2: Harvard Business Review: The Case of the Pricing Predicament #2
Read the case study: The Case of the Pricing Predicament (link below).
Write a paper using Occidental Aerospace and Standard Machine Corporation as your examples and explain pricing approaches.
Which approach is Standard Machine Corp. using.?
Is this approach the best approach?
Analyze the sales pitch provided by Scott Palmer to the buyer, Joanne Braker.
Is Scott\’s communication effective?
If you were sales manager Tony Della Pena, what would you recommend and why?
In your analysis and evaluation, be sure to discuss and reference concepts from the textbook and required readings. Complete additional research in the CSU-Global library.
Your paper should be two to three pages in length, not including the cover and references pages, and conform to CSU-Global Guide to Writing and APA. Include at least two scholarly references in addition to the course textbook. The CSU-Global Library is a good place to find these references.

SAMPLE SOLUTION

The Case of the Pricing Predicament
The product pricing strategy adopted by a firm greatly affects a customer’s decision on whether or not to purchase a certain commodity. Competition is extremely high in today’s markets. Technological advancements have also eased the means by which customers can compare prices between competing vendors. For this reason, it is crucial that firms remain considerate about customers’ perception of value if they want to stay in business. This paper reviews some pricing approaches that are currently in the market (Armstrong et al., 2015).
Pricing Approach Applied by Standard Machine Corp
Standard Machine Corp is using value-based pricing method. Hughes (2011) defines value based pricing is an approach to pricing in which the price of a commodity is based on the perceived value that the customer holds in relation to the product. This value is also dependent on the immediate alternatives that the customer has for the product. To calculate the list price using this strategy, one considers the next best…