While the actual cost of a smart-phone is about $300, wireless carriers in some countries offer their customers a “free” smart-phone with a two-year wireless service agreement. Is this pricing strategy rational? Explain.

In light of these estimates, do you think it is profitable for Way Cool to engage in limit pricing? Is any additional information needed to formulate an answer to this question? Explain.
January 4, 2018
Principles of qualitative research Experimental research and field visits
January 4, 2018

While the actual cost of a smart-phone is about $300, wireless carriers in some countries offer their customers a “free” smart-phone with a two-year wireless service agreement. Is this pricing strategy rational? Explain.

According to International Data Corporation (IDC), the number of worldwide smart-phone owners will soon exceed 1.5 billion. That number is expected to grow at nearly 10 percent per year for the next five years. While the actual cost of a smart-phone is about $300, wireless carriers in some countries offer their customers a “free” smart-phone with a two-year wireless service agreement. Is this pricing strategy rational? Explain.

 

"Is this question part of your assignment? We Can Help!"

Essay Writing Service