Pricing products or services can be a difficult task in the market

Background: Pricing products or services can be a difficult task in the market. If a company prices the product too high it will sit on shelves, while pricing a product too low will result in shortages. Both of these scenarios lead to lower profits. From the perspective of this course, we know that a firm should produce until marginal revenue equals marginal cost. Therefore, as long as the additional revenue from the last product is greater than the additional cost, continue to produce.
The purpose of this team project is to research, analyze, and present a specific pricing strategy. The team can choose from one of the following examples or select a specific product/service of interest:
i. Kindle Fire
ii. Sony Playstation 5
iii. Apple Watch
iv. Moderna Vaccine
v. Chuck E Cheese
vi. Mylan EpiPen
vii. Volkswagen and Bugatti

Directions:

1. A team of 3-5 students will need to select one of the topics provided above or agree on a specific product in Week 3. One member of the team should email the instructor providing team member names and first, second, and third choice for the topic. Please note each team will have a unique topic, unless there are more than 7 teams in the course. The instructor will create a group in the users section of Blackboard. This will enable group members to collaborate on the project.
2. Become familiar with the Pricing Strategy resources provided in Week 3. This includes the topics discussed in class regarding supply and demand, market type (competition), and pricing strategies. Please note that pricing a product is discussed throughout the course, with an emphasis in weeks 4 and 5.
3. Your team will make up the Pricing Department, reporting an overview of your product and strategies to executives. You are expected to provide a recommendation with support from economic theory. This presentation will be 15-20 minutes recorded through the Zoom application.
4. Your team is expected to have no more than 10 slides maximum, including Title and Reference slides. Feel free to use Powerpoint, Google Slides, Prezi, or other presentation software/tools. The team should address the following regarding their topic:
   a. Brief overview of the product or service. What purpose does it serve?
   b. Overview of the market.
   i. What competition exists? Are there barriers to entry?
5. Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
6. Potential change - regulation, market environment, etc.
   ii. What could impact supply or demand of the product.
7. Factors that could shift demand or supply
8. Market outcomes (Price, Quantity)
   iii. Current pricing strategy
9. Is this profit maximizing given the market?
   iv. Given the firm, market structure, and product, what other pricing strategies could be implemented? Refer to text and Chapter 10 - Advanced Pricing Decisions
   c. Additional resources to support potential strategies. The project is required to have at least 5 resources, including articles provided and textbook.
   d. As the Pricing Department, provide a final strategy recommendation to executives. This might include a trial period or alternative scenarios.

Deliverable: Each team member needs to upload the Zoom recording and Team Assessment to Blackboard’s Week 6 Assignments folder. In addition, one member from the team needs to create a thread in the Discussion Board Week 7. Please title the thread your product. In the thread include an introduction to your team members and provide the link to watch the presentation through Zoom.