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

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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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.

Expert Solution
Background

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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