consumer

There are currently no competitors launching the same product

When competitors join

brand influence

Initial price elasticity is small

Quick return on investment

By setting a higher price to enhance product identity, Create the impression of a high-priced, high-quality brand

Gradually reduce prices to maintain corporate competitiveness

Limit the excessive growth of demand and alleviate the shortage of products

Use the high profits obtained from high prices to invest and gradually expand production scale

Can easily lead to failure in new product development

forcing prices to drop sharply

Cause public relations problems

There is sufficient market demand

Consumers are highly price sensitive rather than having strong brand preferences

Mass production can yield significant cost economic benefits

Low price strategy can effectively combat existing and potential competitors

Gain a long-term and stable market position

Prevent competitors from entering

small profit