Different companies make their products or design their services for customers, which are to sell in the market. Company has to receive the exchange against the sell from the customers, which is called price of the product or service. Setting the price for a product is a complex process in which different organizations consider manufacturing cost, market and economic conditions, competition, demand and quality. In this study, we will discuss about the pricing techniques and theories, which will help us to understand the process of setting the pricing and valuation.
Valuation process refers to value the product or services by customers of any company. This is an estimation of worth of separated products and services. We can see the immense variations in pricing among different companies despite having the same product. Product contains some features in it, which allow the companies to play with the prices for the customers. Customers can evaluate the product by its pricing and can make the decisions for purchasing any product or not. In this study, we will discuss the relation between price and evaluation and its impact.
Smart phones are in limelight for many years and used to communicate with each other on this globe. Now this is the most used device for communication process in this world in the hands of millions of people. Smart phone market is been lucrative since it introduced. In this study, we will discuss Apple I Phone 6, LG G3 and Samsung Galaxy S6 to have order pricing and different in them.
Pricing Strategies for Smart Phones
Apple, Samsung and LG are three prominent companies in their pricing strategies. This is better for us to understand the pricing strategies of these companies as they may different from each other. Apple is using premium, pricing strategy for its I Phone 6 in the market to retain and sustain the favorable perceptions among customers. We can call it skimming price strategy as they are intended to provide the perception of higher quality, differentiating and luxury life. (Nielson, 2014)
On the other hand, Samsung is also using the skimming pricing for its S6, which created an immense competition and confusion in the customers to make their buying decisions. LG pricing strategy for its smart phone LG G 3 is cost plus fixed mark up. This is different from other pricing strategies as they just intended to consider cost of product and reasonable profit. Apart with this, they are price competitive in the market and set the price according to the competitors’ actions with their smart phones. They believe in reduction of process for their smart phones as they are looking for higher profit and revenues. (MERCADER, 2014)
|Mobile Phone||Apple I Phone 6||Samsung Galaxy S6||LG G3|
|Price List||$ 649.92||$ 699.99||$ 449.76|
Astoundingly, Samsung Galaxy S6 is on top with its price of $ 699.99. This is an example of skimming pricing by this company to show the aggressiveness towards the competitors like apple and LG. Apple is little behind of Samsung with the price of $649.92. However, it is seen that despite having the lower price than Samsung, sales is not good as expected in the world market as purpose of Samsung to sustain the skimming price is been satisfied. LG mobile are in limelight now days due to its Camera, battery and design. Price of LG G3 is much lower than these big giants are.
Order pricing will refers to the decision making process which will allow us to understand the reason of buying decision. Samsung, Apple and LG smart phones have different ratings according to the feature sand specifications. In this study we will mentioned how Samsung galaxy S6 is used immensely among the customers due to retaining and features with using the tabular form. This is the best thing for us to understand the order pricing and their different among three big giants.
Valuation of Smart phones
Features of smart phone
As comparison between three Smartphone, categories are Samsung galaxy S6, apple phone 6 and LG G3. These Smartphone’s have wide features in recognizing the high values in the customer’s minds. These brands have develops the positioning and deliver high quality services to its potential customers. The Samsung galaxy S6 has battery of 2550 mash and 1.5 quad-cores GHz Cotex-A53 are the main features of S6 towards its processors. The camera features of Samsung galaxy S6 is 16 MP and have 3456*4608 pixels. High pixel density is the design characteristics of Samsung galaxy S6. The battery of phone 6 is 1810 mash. The apple phone 6 has camera of eight MP and have 3264*2448 pixels. High pixel density with oleo phobic coating sensors is placed in the apple phone 6. The battery of LG G3 is 3000 mash. The resolution of camera is 13 MP and has 4160*3120 pixels. The design of LG G3 is high pixel density and have proximity compass.
Rating of smart phones
|Smart phone models||Design||Camera||Battery life||Average rating||Pricing||Decision|
|Samsung galaxy S6||9||10||7||8.67||7 ( $699.99)||1.67|
|Apple phone 6||8||8||5||7||8($ 6.49.92)||1|
|LG G3||7.5||7||6||6.83||9 ($ 449.76)||-2.17|
In rating the Smartphone’s the decision is selection of Samsung galaxy S6. In highlighting, the major rating in design of Smartphone’s is nine of Samsung galaxy S6 because it has features of high class and social affiliation. In the specifications of camera, Samsung galaxy has also gets higher rating due to high battery features 2550 mash and 1.5 quad-cores GHz Cotex-A53. Their processors show that the battery life of Samsung galaxy S6 is very suitable. The average rating is high for also Samsung galaxy S6. In last the pricing is very low of LG G3 it means it have high rating in the pricing list. Thus to sum up all the specifications of Smartphone’s that gives the higher decision rating is Samsung galaxy S6 that is 1.67.
Consumer weights of smartphones features (based on preferences and needs)
The Samsung galaxy S6 is the largest South Korean company and gives very tough time to its competitors. The large volume of Smartphone’s of galaxy S6 is preferable for the social affiliation and has values in the minds of the consumer. The differentiation in their products as well as focus on the name of galaxy is the major core edge of the company. The countless choices and gives answer in the flagship handset realize the major attributes of the Samsung galaxy S6. This means that the consumer weight higher to the Samsung galaxy S6 due to its wide range of features. (Spence, 2015)
In ordering the evaluation of Smartphone characteristics is the major contribution is given by the Samsung galaxy S6. As the rating towards the models of the Smartphone is high recognition of Samsung galaxy and have attributes toward their competitors. Thus to sum about the order evaluation of the Smartphone models is the major focus on the pricing as well as design of the Smartphone.
Smart phones decision making (Pricing and valuation based)
Pricing Smart phones
The price of the Samsung Galaxy S6 is $699.99 and this price is actually aligned with the competitive market price. The Smart phone features are the key component that gives the basic mindset about the selection criterion to ponder upon the way, as it needed to give. The Samsung Galaxy S6 is the highest price phone that may create the difficulties in getting the mass of consumers in all aspects. The price of the phone ignites the involuntary comparison of its features and specification and the self-analysis to justify the price. Behind the general comparison, the individual’s comparison stars when the consumer starts thinking about the social features important to him. The price-centered people are not always in the way to buy this one because this option can demands many compromises in required income. In the race of pricing selection the big monster has, the lowest rating according to the price that is 7 out of 10 that may affect the purchase behavior a lot.(Kelly, 2015)
As compare to price of Samsung Galaxy S6, the other most possible option to select is the Apple I Phone and in normal features, that constitutes fewer prices slightly. The price of $649.92 can put the customer on the way to think about the features because the price is matter a lot even in the biggest capitalist. The entertainment and the features selection at one’ level always consider the price as the most important elements in the selection of Smartphone that is change able as well but again it is directly applies through the individuals difference while perceiving about the brands. The rating of this Smartphone is about average, although it is more than the afore-said the 7 out of 10 is insufficient in making the purchase decision. The last Smartphone constitutes the biggest rating at mass level that is 9/10 and can create the purchase decisions with immediate affect rather than the features consideration enough. The only reason behind to initiates the sale of mobile phone because the highest rating with the lowest price.(Monckton, 2015)
Weighted Valuation of Smartphone’s
The design is the major feature in selection according to those consumers who believes in the physical look and the smart look that can attract the other peers towards the Smartphone. The design is the biggest factors that may enhance the level in which the other features can be lowest in consideration in different angles. The design is the first feature among the valuation of Smartphone and Samsung Galaxy S6 is the latest phone with the extra ordinary features as require doing according to consumers. The design of this mobile is much more in looking than the LG G3 that looks old trend. (Kelly, 2015)
The camera is another feature that is also important in extracting out the valuation of this brand because the camera is the most usable feature now a day. The next thing that is considerable in getting the whole valuation is about the Battery life. The rating of these three features in the valuation is more at Samsung Galaxy S6 and less at other two brands. Although the design of the I phone six is distinctive one but the more rating according to valuation of consumers constitutes by the Samsung Galaxy S 6. (Monckton, 2015)
Difference between orders
The Smartphone selection as the previous research argues is highly centralized with the individual selection but more introspective approach is to compare it with the price and valuation which can comes up with the final decision making intervention. The average rating of the Samsung Galaxy S6 is the best one in getting the features because its rating is about the 8.67 that is higher than the other two brands and collectively the Samsung Galaxy decision S 6 have the rating of about 1.67. This rating is highest in purchase decision other than the phone 6 and even the negative rated LG G3. (phones.toptenreviews.com, 2015)
Most likely preferences
The Smartphone selection is the executive level decision and needs a thought development platform in the same manner because decision can float from one consumer to another one. The Smartphone selection can generate the enough revenue through the realization thought in the way that is most likely gives the average look in decision-making as ordering showed. The most likely preference is the Samsung Galaxy S6 through the complete individual thought realization as well. (Kelly, 2015)
In this study, we discuss different pricing strategies from different mobile phone company such as apple, Samsung and LG with their prominent smart phones. Pricing and customers have a strong relationship as these pricing strategies have direct affect on customers buying decisions. We discuss three big giants, which are aggressive and skimmed in their pricing as compared to the others companies in this world. This study helped us to understand the valuation process with effective retain methods of pricing using the different features and specifications. We will see in the next years these companies will more aggressive and competitive with improvisation regarding their strategies.
Kelly, G. (2015). iPhone 6 Vs LG G3 Review: Heavyweights Trade Blows. Retrieved July 02, 2015, from http://www.forbes.com/sites/gordonkelly/2015/01/27/iphone-6-vs-lg-g3-review/
MERCADER, V. (2014, December 15). Samsung Galaxy S5 vs LG G3 Review: Comparison of Specs, Features, Price. Retrieved July 2, 2015, from Christianpost: http://www.christianpost.com/news/samsung-galaxy-s5-vs-lg-g3-comparison-of-specs-features-price-131210/
Monckton, P. (2015). iPhone 6 Vs Samsung Galaxy S6 Edge: Quick Draw Cameras. Retrieved July 02, 2015, from http://www.forbes.com/sites/paulmonckton/2015/06/30/quick-draw-cameras-iphone-6-vs-samsung-galaxy-s6-edge/
Nielson, S. (2014, February 6). Why innovation could be the key to Apple’s growth. Retrieved July 2, 2015, from Market Realist: http://marketrealist.com/2014/02/apples-premium-pricing-strategy-product-differentiation/
phones.toptenreviews.com. (2015). Smartphones. Retrieved July 02, 2015, from http://cell-phones.toptenreviews.com/smartphones/
Spence, E. (2015). Samsung Galaxy S6 Long-Term Review: Why It Beats The Galaxy S6 Edge. Retrieved July 2, 2015, from http://www.forbes.com/sites/ewanspence/2015/06/27/samsung-galaxy-s6-vs-galaxy-s6-edge-review/