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Yes, there are several companies that have successfully implemented similar pricing strategies. For instance, Apple Inc. uses a premium pricing strategy, setting their products' prices higher than their competitors to reflect the perceived quality and status symbol of their products. Another example is Amazon, which uses a penetration pricing strategy, setting their prices lower than their competitors to attract customers and gain market share. Lastly, Uber uses dynamic pricing, where prices fluctuate based on demand and supply.
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The company also applies price increases to certain drinks and sizes rather than the whole product line. "By raising the price of the tall size brewed coffee exclusively, Starbucks is able to capture consumer surplus from the customers who find more value in upgrading to grande after witnessing the price of a small drip with tax climb over the $2 mark. By versioning the product in this way, the company can enjoy a slightly higher margin from these customers who were persuaded by the price hike to purchase larger sizes," Price Intelligently experts say.
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Take the most advantageous pricing approach to increase profitability of your organization. Use our Pricing Strategies presentation to outline factors...
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