Comparing Price vs. Product Design Strategies
A company that manufactures a standard home coffee maker wants to increase its total revenue. The management team is debating two potential strategies:
Strategy A: Keep the product exactly the same, but significantly lower its selling price.
Strategy B: Invest in a major redesign to add new features, such as a built-in milk frother and a programmable timer. This redesign would require increasing the selling price.
Evaluate the two strategies. In your response, compare and contrast how each strategy attempts to influence consumer demand and discuss the potential risks associated with each approach.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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