Homework Assignment Example | Topics and Well Written Essays - 750 words

Homework - Assignment Example Cadenas sales force is likely to be unenthusiastic about the value-in-use pricing strategy. This is because, by using the cost plus pricing strategy, they would sell more since the PESA would be provided for free. This would encourage more customers to buy the servers since they will be provided the extra application for free. Nevertheless, they would also be encouraged to sell using the value-in-use pricing strategy since it will it offers a higher price thus a chance to a bigger commission (Bharadwaj and Gordon 4-6). Therefore, Jowers would recommend that the sales force should undergo training in order to comprehend and sell the value of PESA effectively. This will be achieved by convincing consumers that the represents higher productivity and greater savings. In the beginning, consumers will likely question the company’s reasoning in deviating from their tradition approach of providing such performance enhancing tools like PESA for free. This is one of the most difficult tasks that are associated â€Å"Atlantic Bundle† pricing. Therefore Atlantic Computers should strive to demonstrate to their consumers that PESA fundamentally quadruples the number of usual and basic TRONN servers. Additionally, they will need to emphasize that the tool will provide a saving aspect depending on the number of servers being purchased as well as saving on other costs. It is also imperative to ensure that they continue to providing excellent after sale service to encourage loyalty (Bharadwaj and Gordon 5-7). It is projected that the â€Å"Atlantic Bundle† will take approximately 4% market share. Therefore, it is improbable that Ontario will have any concerns at that particular time and would likely not take any counteracting measures at the new product entry in the market. However, Ontario is likely to take two to three years before