Apple

October 2, 2014

iPhone

1. These events were part of a long term pricing strategy in order to gain more customers. Apple had built a loyal customer base over the years and anted to add to that so they made the right decision for the future. Even with cutting the price they reimbursed loyal customers to keep them satisfied as customers.

2. We can learn that everyone will not be happy with every decision made. This was carefully planned as Apple decided to drop their price during the holiday season. Apple chose this time because other technology products would be cutting their price and this was the best time to gain new customers.

3. I think it would be better to make the mistake by pricing too low because the price can always be raised. If you have a superior product your customers will still want the product so they would be willing to pay more. Short-term, you might miss the chance to maximize profit, but more people will be willing to buy the product for the first time at a lower price. This will gain more loyal customers that will be willing to pay more for a product they are satisfied with. Long-term profits will be maximized and there will be more revenue as you have gained more customers.

4. I think Apple handled the dissatisfaction o its customers perfectly. The in-store credit was a great decision because Apple would not really use any profit because they would get it back from another product. On the other hand, customers would not be as angry because they are receiving something for their inconvenience instead of nothing at all. This let customers know that they were being heard. One thing Apple could have done was give these customers a $200 discounted price on the next iPhone that would be released. I think customers would have been more satisfied with this because it would give them something to look forward to. At the same time, It would get more people to buy the newer version of the iPhone who may not have bought due to lack of finances or just...