Price is the only factor for the company to getting income after marketing efforts. So right pricing decisions are very important works for the company. Most of Korean companies have mainly used cost plus pricing method on pricing decisions of export.
This method have problems which cannot objectively evaluate customer's perceived value of product ＆ rightly forecast demand. Korean brand of Color Televisions get less priced even when objective quality is higher than a certain few competitors in U.S.A market due to using this method.
There are some similar ＆ dissimilar points between China ＆ U.S.A's (U.S.A:1980~1990, China:1992~1996)Color Television market. Similar elements are market size, import ratio, market growth, competitor's price gap, etc. Dissimilar one are competitor's technology gap, customer's consuming behavior, distribution channel, etc.
China is newly huge television market for the Korean companies. Therefore, initial pricing strategies for entry market are very important because price gives important two meanings which relate with company profit and give the signal of brand positioning on the market.
This thesis focuses on finding, under considering the China ＆ U.S.A's market environments (similar ＆ dissimilar points ), the effective pricing decision process & strategy in the China market by comparing between cost plus method and conjoint analysis method(using price response function).
The effective pricing decision process ＆ strategy in the China market were found as follows; ① Initial(market entry) pricing strategy are focused on the pursuit of high-priced one ② Conjoint analysis method is better than cost plus method to achieve marketing's goals. Conjoint analysis method is more effective when new product has more unique product feature ③ China's specific market variables, which are accumulated from past experience pricing decisions, are reflected into a final decision making. ④ It is necessary to using price-response function even when pricing changes ＆ to considering price changes by included pricing schedule. ⑤ It is necessary to evaluate for pricing result ＆ to develop evaluation method.
