Pricing Strategy

A company called “Newco” wants to market a new e-scotter that they think can be very innovative. The key question they face is what the launch price has to be. They have started a research project in which they have collected information from eleven future competitors. They have collected data about sales prices, market share, brand awareness, and several other issues, such as the importance customers attach to some technical features (for example, safety, battery charging, and lifetime).  With this information, they want to decide their launch price. The features they have collected are the following:

  • Marketing Effort: classification of competitors’ marketing efforts [LOW, MEDIUM, HIGH]
  • Years in market: Years since the competitor launched the product.
  • Brand Awareness: In several interviews with clients, they have been asked if they know a specific brand (a range from 0 to 100)
  • Feature 1: Battery charging time (a scale from 0 to 100, where higher values mean a lower charging time).
  • Feature 2: Battery life (a scale from 0 to 100, where higher values mean a longer life)
  • Feature 3: Safety (a scale from 0 to 100, where higher values mean more safety features)
  • Feature 4: Another technical feature scaled from 0 to 100.
  • Price: current market price
  • Market share: market share of each competitor in % (TARGET)

Note: For this example, these data have been generated synthetically by

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