Using the points and examples from the lecture, explain the two pricing strategies described by the professor.
1. Today we'll talk about how companies determine the initial price for their products, by that I mean when they first introduce a product in the market.
2. There are different approaches and today we will discuss two of them.
3. They are quite different, each with their own advantages.
4. One approach, or strategy, sets the initial price of the product high, followed by a lower price at a later stage.
5. Why?
6. Well, when introducing a new product, companies want to build a high-quality image for it.
7. Products that cost more are believed to be of higher quality.
8. So, during the early stages of the product life cycle, companies can make very high profits from consumers willing to pay more for a high-quality product, and although consumers know that prices will eventually go down, they are also willing to pay more to get the product sooner.
9. This approach works very well with, oh, innovative high-tech products for example.
10. Now just think about when video recorders, or video cameras, or even cell phones first came out.
11. They were very expensive, but then they became much more accessible.
12. Another very common strategy sets an initial price low.
13. Now this happens when the market is already saturated with the product and the strategy is to undercut its competitors.
14. Say there is a newly starting computer maker trying to gain market share, so what do they do?
15. Well, they offer a computer at an affordable price, lower than existing brands.
16. By doing this, the company appeals to new consumers who weren't probably even interested in getting a computer, and, well of course, to existing consumers who might now be tempted to switch brands.
17. Now how does this company make profits with its low-price computer?
18. Well, one thing that's often done is to encourage their customers to buy accessories also manufactured by them, like printers or software for example.
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance on vocabulary words:
No of characters: 818.0 578.828451883 141% => OK
No of words: 186.0 151.265690377 123% => OK
Chars per words: 4.39784946237 3.82278263415 115% => OK
Fourth root words length: 3.69299088775 3.50058242952 105% => OK
Word Length SD: 2.40805005193 1.80425224433 133% => OK
Unique words: 120.0 92.4686192469 130% => OK
Unique words percentage: 0.645161290323 0.61298525976 105% => OK
Syllable count: 273.6 182.283891213 150% => OK
Avg_syllables_per_word: 1.5 1.20543933054 124% => OK
Performance on coherence:
Topic speech coherence ratio: 0.0883782589483 0.0839705835288 105% => OK
Acoustic performance on paragraphs:
How many acoustic paragraphs: 3.0 4.47071129707 67% => OK
Average paragraph length: 62.0 65.8948926009 94% => OK
STD paragraph length: 8.64098759788 19.7758100068 44% => OK
Average paragraph duration: 19.6566666667 25.5208953607 77% => OK
STD paragraph duration: 4.48724364789 7.49434385956 60% => OK
Acoustic performance on sentences:
How many acoustic sentences: 28.0 42.9832635983 65% => OK
Average acoustic sentence length: 6.64285714286 3.78147595546 176% => OK
STD acoustic sentence length: 4.69965261417 2.94285465224 160% => OK
Average acoustic sentences duration: 2.00928571429 1.39386743896 144% => OK
STD acoustic sentences duration: 1.41842701754 0.967747756167 147% => OK
Acoustic performance on acoustic silence:(An acoustic silence means a little pause between two or more words)
How many acoustic silence: 32.0 40.4456066946 79% => OK
Total acoustic silence duration: 8.99 7.59280334728 118% => OK
Average acoustic silence duration: 0.2809375 0.19053887516 147% => Maybe the pauses are too long.
STD acoustic silence duration: 0.24637825816 0.157467062838 156% => The duration of acoustic silence changes often. It may have hesitations.
Acoustic performance on acoustic words:
Total word duration: 45.73 46.3453556485 99% => OK
Average word duration: 0.245860215054 0.308780311121 80% => Maybe the speed rate is very high.
STD word duration: 0.153148188226 0.201157623399 76% => OK
Disfluencies: like hesitations, or 'ehn' or taking a long time to pronounce a word:
How many disfluencies: 2.0 8.09623430962 25% => Good job, the lower, the better.
Total_disfluencies_duration: 1.54 6.56692468619 23% => Good job. The lower, the better.
Total acoustic noise duration: 2.04 3.53066945607 58% => OK
Acoustic rates:
Total speech duration: 58.97 59.5455230126 99% => OK
Compare to expected duration: 0.982833333333 0.992425383543 99% => OK
Rate of silence: 0.542648804477 0.681803438845 80% => OK
Rate of speech: 3.15414617602 2.53813033465 124% => OK
Rate of speech by unique words: 2.03493301679 1.55221717717 131% => OK
Rate of word duration by unique words: 2.62409796632 1.99939622689 131% => OK
Average articulation rates: 0.337535010753 0.309613076454 109% => OK
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Rates: 90.0 out of 100
Scores by speech e-grader: 27.0 Out of 30
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Note: the speech e-grader does NOT examine the meaning of words and ideas.