How can Nintendo continue to offer value to its customers given the fact that the company rarely, if ever, decreases the prices of its hardware or software? Justify whether Nintendo should keep its current pricing strategy or adopt a different pricing strategy
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
Price challenge;
How can Nintendo continue to offer value to its customers given the fact that the company
rarely, if ever, decreases the prices of its hardware or software? Justify whether Nintendo
should keep its current pricing strategy or adopt a different pricing strategy.
The growth strategy being used by the company Nintendo is the Market Development strategy.
This is exactly what has been done by Nintendo. It introduced its existing product - Wii home gaming system- to a new customer segment. This new customer segment is the older consumers who are in retirement homes for their light exercise. Thus, the market development growth strategy has been used by the company.
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