Market share gained can significantly influence the pricing strategy. A company with a larger market share has a competitive advantage and can set prices that reflect this dominance. They can afford to lower prices to attract more customers or maintain higher prices due to the perceived value of their product. Conversely, a company with a smaller market share might need to price their products competitively to attract customers from the dominant player. In the context of the content, the size of the bubble on the perceptual map indicates the competitor's market share, which can be used to understand their pricing strategy.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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